GBPJPY sentiment has been improving since Wednesday’s 7 month low at 168.02. However, although Monday’s trading has posted a 3rd higher daily low and high in a row, investors are likely to be cautious with prices trading close to their 50,100 & 200 day average rates, as well as to 173.08, a 50% recovery to October’s losses.
Sellers have returned, albeit modestly, to the market in Asia on Tuesday, but while signals have weakened they are not strong and the outlook is just cautiously bearish below a stop loss at 173.08, last week’s high. Targets are to 171.96, yesterday’s low, 171.07, Friday’s opening trade and 170.20, Friday’s base.
