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British Pound Targets Lows versus Japanese Yen

By , Quantitative Strategist
24 May 2012 14:40 GMT
ssi_gbp-jpy_body_Picture_12.png, British Pound Targets Lows versus Japanese Yen

GBPJPY – Forex trading crowds continue to buy into British Pound weakness against the Japanese Yen, and our sentiment-based trading strategies continue selling into GBPJPY declines. We see little reason to call for any significant short-term reversal as the Japanese Yen itself continues to strengthen across the board.

Weekly GBPJPY highs of ¥126.45 offer clear short-term resistance and max risk on short positions. The pair has recently found support at its 200-day Simple Moving Average at ¥124.20, but a break lower sees little in the way of major support until key congestion levels at ¥122.50 and ¥120.00.

How do we interpret the SSI? Watch an FXCM Expo Presentation that explains the SSI.

--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com

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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
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24 May 2012 14:40 GMT