Bearish signals for GBPJPY on the week have been confirmed with sentiment posting a 4th lower daily high & low in a row on Wednesday. However, with intraday sentiment oversold near the 200 day average rate, yesterday’s call was to sell the rally at 178.20. This was close to the European high, sentiment deteriorating by 1 ½ Big Figs from the top.
The dip has been bought in the New York time-zone though; sentiment closing unchanged and formed a daily Hammer. This is a signal which highlights bearish exhaustion and so with this in mind the outlook for Thursday is to buy on the open and at 178.47, today’s Asian low, with a stop loss at 177.94, the last 9 hour low trade. Targets are to 179.80, 180.56, this week’s high and 180.93/95, last Thursday & Friday tops. 