GBP/JPY: The cross continues to show evidence of the formation of a meaningful base, with the latest topside acceleration blowing through a good deal of significant resistance levels in the form of the 200-Day SMA and critical multi-day highs from October 2011 at 127.35. Still, while we do see the market in the process of carving meaningful longer-term base, daily studies are now severely stretched and we look for the market to pullback over the coming sessions towards the 123.00 area to allow for studies to unwind and the formation of the next higher low ahead of a bullish resumption.
--- Written by Joel Kruger, Technical Currency Strategist
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