Yesterday’s bullish signals for GBPJPY were confirmed with initial gains of ¾ Big Fig. However, with momentum slowing at Thursday’s high and the 100 day average rate and the stop raised to the entry point, a complete reversal saw investors sell the market by almost 2 Big Figs from the top.
Although this is negative, prices are re-testing the 200 day average and while above this level signals are pointing to a temporary recovery.
With this in mind the outlook for Thursday is to buy on the open and at 170.71, Friday’s low, with a stop loss at 170.45, the 10 week base. Targets are to 171.40, 171.92, Wednesday’s opening trade and 172.64, the 7th Aug top.
