October’s GBPJPY surge in sentiment has taken prices above their 50,100 & 200 day average rates. However, sellers have returned to the market on Thursday at 184.33, a 6 year high, for sentiment to deteriorate by just over 3 Big Figs from the top. Although the pullback has stalled on Monday, an unchanged daily close has so far offered no buy signal.
However, today’s gains in Asia have ended a small sequence of lower daily highs, so although signals aren’t strong they have a positive bias. With this in mind the outlook for Tuesday is to buy on the open and at 182.10 with a stop loss at 181.76, today’s Asian low. Targets are to 182.86, Friday’s high, 183.18, Thursday’s open and 184.33, Thursday’s 6 year top.