At 5 ¾ year highs pullbacks in GBP/JPY have to be expected and following a new top in July at 175.38, investors have taken profits and sold the cross to post a loss of 2 ½ Big Figs since the high.
However, although the pullback is signalled as being potentially corrective and temporary, with no sign yet that it is ending, the outlook for this week is to sell on the open and at 173.90, with a stop loss at 174.57, Tuesday’s high. Targets are to 172.96, last week’s low, 172.38/45, the 2 week base as well as the 50 day average and then 171.69, the 100 day average rate
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