GBPJPY: Pulls Back Off Recent Highs
GBPJPY – While GBPJPY may have turned lower following its recent rally, it continues to retain its broader upside bias in the medium term. As long as its rising trendline support presently at the 12568 level holds, we look for the cross to eventually return above the 129.62 level. Above here will call for a move higher towards the 130.84 level with a cut through here allowing for more upside towards the 131.80 level. Alternatively, support lies at the 126.68 level where a break will push the cross further lower towards the 125.81/68 levels, representing its Jun 21’2012 high/trendline support. Further down, support lies at the 124.71 level, its Oct 11’2012 low. On the whole, the cross remains biased to the upside medium term despite its pull back.
