GBP/JPY: This market could be in the process of establishing a major base following the September break to record lows. However, the latest round of setbacks will need to hold above 119.00 (key 78.6% fib retrace) on a weekly close basis for this newly adopted constructive outlook to remain intact. Look for a daily close back above 122.80 to confirm successful defense ahead of 119.00 and open the door for a bullish resumption. Otherwise, we could see risks for acceleration to fresh record lows below 116.80.
--- Written by Joel Kruger, Technical Currency Strategist
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