Tuesday’s bearish signals for GBPJPY were confirmed with a 1 Big Fig sell-off, but with sentiment recovering to close unchanged, Wednesday’s signals pointed to further improvement. These too were confirmed, investors buying the cross yesterday to post a gain of over 2 Big Figs on the day.
There is no sign that demand is ending; however with intraday signals at overstretched extremes, the outlook for Thursday is just cautiously bullish, buying modestly on the open and then at 176.50, with a stop loss at 176.18, today’s low in Asia. Targets are to 177.25, 177.90/178.00 and 178.50.