Bearish signals for GBPJPY on the week have been confirmed, but with Wednesday’s strong sell-off attracting buyers from just below the 100 day average rate, yesterday’s outlook was neutral. Initial gains in Asia attracted sellers in Europe for sentiment to close little changed on the day.
The failed rally is negative though, and renewed selling in Asia this morning keeps signals for Friday bearish and the call is to sell on the open and at 171.58, Thursday’s low, with a stop loss at 171.93, today’s high in Asia. Targets are to 170.45/55, the 9 week low, 170.00 and 169.50/54, April & May’s low trades.