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 unwinding from stretched levels and we look for the market to start to pull back over the coming days before a fresh upside extension. There is some good resistance above 133.00 which could ultimately cap for now. Look for setbacks to be well supported above the 100-Day SMA.
--- Written by Joel Kruger, Technical Currency Strategist
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