Bullish signals for GBPJPY on the week have been confirmed, as gains of over 1 Big Fig have taken prices above their 50,100 & 200 day average rates and through last month’s 173.86 high.
However, while Tuesday’s outlook remained positive, despite posting a 3rd higher daily low & high in a row, initial gains of almost ¾ Big Fig were virtually all given up. A daily Shooting Star has subsequently been formed, a sign of bullish exhaustion. With this in mind the outlook for Wednesday is temporarily bearish and the call is to sell on the open and at 173.38, today’s high in Asia, with a stop loss at 173.60.
Targets are to 172.65/75, this week’s low, 171.94, Friday’s base and 171.67, last week’s low trade.