Against a background of bullish signals for GBP/JPY on the week, but with daily sentiment overstretched near May’s 173.55 high, Tuesday’s forecast was for a temporary profit taking pullback.
Contrary to this view however, investors bought the cross for sentiment to post a 4th higher daily low in a row and a gain of just under ½ Big Fig on the day. With no sign that demand to buy dips is ending, the outlook for Wednesday is to buy on the open and then at 173.00, with a stop loss at 172.70, this week’s low. Targets are to 173.55/59, May & March’s high trades, 174.00 and 174.86, this year’s over five year top made in January. 