GBP/JPY outlook: Hits new multi-year high

Slobodan Drvenica Windsor Brokers

GBP/JPY

GBPJPY remains in an unobstructed uptrend and hit new multi-year high (the highest since 2008) in early Monday.

The cross extends steep ascend into eleventh straight day, after registering the sixth consecutive monthly gain in June.

Yen weakened further against all major currencies on dovish BoJ and despite looming intervention after Japanese authorities signaled readiness to intervene to support falling currency.

The price has established above psychological 200 mark (also near Fibo 61.8% retracement of 251.08/116.95 2007/2011 downtrend), following the second monthly close above this level.

Bulls eye targets at 205.62 and 206.45 (Fibo 238.2% and 261.8% projections of the upleg from 197.20 higher low) which guard 210 round-figure barrier, ignoring for now intervention threats.

However, strongly overbought conditions on daily chart, signal that bulls may take a breather in coming sessions.

Rising 10DMA (202.32) offers solid support, which should ideally contain dips and keep intact lower pivots at 201.00/200.00 (20DMA /psychological).

On the other hand, the pair would accelerate lower in case Japanese authorities decide to intervene.

Res: 204.27; 205.62; 206.45; 207.80.
Sup: 203.17; 202.32; 201.00; 200.00.

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

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