British Pound Likely to Fall Versus Yen
GBPJPY – Our retail trader sample shows that crowds have recently bought into British Pound weakness against the resilient Japanese Yen, and we view this as contrarian signal that the GBPJPY could continue lower amidst broader market consolidation. The British Pound likewise trades below key Fibonacci and trendline resistance against the Yen; a bearish technical bias lines up with our Speculative Sentiment Index data. Absent a significant shift in the SSI and a GBPJPY break higher, we favor further losses.
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--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.