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