All of last week’s bearish targets for GBPJPY were met with a 2nd lower weekly high in a row and an overall loss of over 3 Big Figs on the week overall. While a daily Shooting Star at September’s near 6 year top has signalled the pullback, it is probably corrective and it has stalled from just above the 50,100 & 200 day average rates.
However, the absence of a buy signal keeps this week’s outlook cautiously negative, selling on the open and at 176.77, a 38% recovery to the losses since September’s top, with a stop loss at 178.28, a deeper 62% correction. Targets are to 174.35, last week’s low, 172.99, the 3 week base and 172.00, the 200 day average rate.
