One year outlook for GBP/JPY
Comment: Last year’s price action was subdued as expected though a small notch lower than predicted. Boring sideways price action since May is likely to continue for at least another three months, all part of the basing process ahead of the all-time low at 118.80 in January 2009. A weekly close above 138.00, probably unlikely until after May 2011 ought to lead to a steadier rally to 145.00 by year-end.
A weekly close below 125.00 will probably lead to a new record low – briefly.
