GBP/JPY Sell Recommendation Issued @159.40


[B]GbpJpy:[/B] The bearish outside day on Wednesday, after posting fresh 2009 highs in overbought territory, now warns of deeper setbacks ahead and we would expect to see a pullback to retest the previous trend highs from early April by 151.55 at a minimum, before considering the possibility of bull trend resumption. As such, any intraday rallies back above 159.00 today are viewed as excellent opportunities to establish counter-trend short trades. A closer look at the hourly chart below shows some solid internal resistance by 159.20, with some additional resistance in the form of the 78.6% fib retrace off of the latest moves by 159.45. We will look to use this zone as an entry for our short trade today, if given the chance. [B]Strategy: SELL @159.40 FOR A 154.00 OBJECTIVE, STOP @162.10. Recommendation to be removed if not triggered by NY close (5pm ET) on Thursday. [/B]

[B]Written by Joel Kruger, Technical Currency Strategist for
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