With last week’s GBP/JPY sell-off stalling this week from just in front of the 50 & 100 day average rates, signals in each of the last 2 days have been bullish. These have been confirmed, with Wednesday’s trading posting a 2nd higher daily low & high in a row and a gain of almost ¾ Big Fig on the day.
Although there is no sign yet that demand is ending, investors are likely to be cautious with prices trading through January’s 5 ¾ year top at 174.86 this morning. With this in mind, the outlook for Thursday is to very cautiously buy on the open and at 174.40, with a stop loss at 174.00, yesterday’s low. Targets are to 174.92, today’s high in Asia, 175.25 and 176.00.
