GBP/JPY: The market remains locked in a choppy multi-day consolidation with the latest moves suggesting that we could see a retest of the range lows which also happen to be the yearly lows at 126.80. However, any additional declines below 126.80 should be limited for now, with the greater risk for a short-term corrective bounce back into the familiar range. For now, a break back above 132.00 would be required at a minimum to relieve downside pressures.
Written by Joel Kruger, Technical Currency Strategist for DailyFX.com
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