Forex Analysis: GBP/JPY Classic Technical Report 12.05.2012
Prices are testing above resistance at 132.39, the 61.8% Fibonacci expansion, with a break higher exposing the 76.4% level at 133.96. Negative RSI divergence warns of ebbing bullish momentum however and hints a reversal lower may be ahead. Initial support lines up at 131.09, the 50% level, with a drop below that targeting the 38.2% Fib at 129.80.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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