I had been anticipating this upside break months too early. Now back in play, GBPJPY appears back on the bullish track and targeting.
I have highlighted the cycle lows, which suggests the 169.45 low seen this month is a major trough. This swing low also respected the 50 week MA which has not been tested since Sep '12. Assuming we see a similar bullish run then this average won’t be tested until Sep 2016.
175 also marks the bullish break of consolidation which may provide buying opportunities if we do see a decent retracement on the weekly charts. However taking into consideration the bullish momentum then we may not see a retracement this far down. Similar to GBPAUD, GBPJPY has the ability to move at break-neck speed once breaks out from its consolidating/complex corrective phase.
Now momentum is clearly within the bullish phase, we can consider bullish setups on D1 and below, seeking key levels of support to buy into.
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