British Pound Likely to Rally further versus Yen
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GBPJPY – Retail FX traders have sold heavily into British Pound strength versus the US Dollar and the Japanese Yen, and we view this as contrarian signal that the GBPJPY and GBPUSD may continue higher.
Trade Implications – GBPJPY: Low volatility warns against buying into sharp GBP strength, but consistent retail sentiment makes buying dips into support an attractive strategy in Sterling pairs. For the GBPJPY that support starts at congestion at ¥174 and ¥172.50, while clear resistance stands at post-financial crisis highs near ¥175.30.
See next currency section:EURUSD - Euro is an Attractive Buy at these Levels
--- 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.