One year outlook for GBP/JPY
Comment: Price action in this pair is generally going to plan, if as always a little more slowly than we had pencilled in. Violent price swings over the last three months are understandable as we try to take out key long term resistance and are seen as a market setting itself up for a big lunge higher. ‘Triangle’ consolidation over the next month or so should them take the cross up to our target at 215.00 by the end of March. Q2 and Q3 should see prices clime to 220.00 and consolidate. Then a final squeeze higher to 230.00 late in 2006, and yet more consolidation. Above the August 1998 high at 241.00 is considered unlikely.
A monthly close below 200.00 forces us to review.
