Forex: GBP/JPY post 2-week low at 146.33, back above 147.00

Tue, Nov 3 2009, 13:47 GMT
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FXstreet.com (Córdoba) – Cable is weaker against the Yen but in the last hours managed to move away from the lows. GBP/JPY bottomed at 146.33, posting a fresh 2-week low but rebounded and rose back above 147.00. Currently the pair trades at 147.10/15, 0.55% below today’s opening price. On the downside support lies at 146.30 (Sept 24 lows) and below at 145.00. To the upside, the pair could face resistance at 147.70 and above at 149.00.

Nicole Elliott, senior technical analyst at Mizuho Corporate Bank, affirms: “This Yen cross has been better behaved than most with October’s bounce from Fibonacci support clearly corrective. The rally appears to have topped at 153.25 allowing the moving averages to cross to bearish. Expect a re-test of the 141.00- 139.00 area this month and we remind that further out we continue to favour a break to new recent lows so that the cross moves towards 130.00. A weekly close above 150.00 forces us to review.”

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