Forex: GBP/JPY stalling ahead of yearly highs 133.50

FXstreet.com (Barcelona) - GBP/JPY is currently near day and weekly highs at 132.38, practically flat since it printed highs at same current quote on Nov 22, 2 weeks ago. The lack of move is mostly given to recent USD/JPY correction, thus Yen strength or lack of more weakness, and at the same time GBP strength, with Cable hitting fresh 1-month highs.

According to contributing analyst for FXStreet.com Richard Lee: “recent consolidation is hinting at a potential correction – even as the longer term technical picture remains yen bearish,” the analyst says, adding: “With long term fundamental factors still intact, especially with a likely Shinzo Abe win in two weeks, any correction should be temporary in nature.” The cross GBP/JPY is so far up for the week by some +0.20%, while SP500 closed Monday -0.47% lower.

Immediate support to the downside for GBP/JPY below recent levels as Nov 22 highs lies at Nov 27 highs 132.07, followed by yesterday's weekly low at 131.58, and Thursday's low at 131.24. To the upside, nearest term resistance shows at recent weekly highs 132.56, followed by Friday's intraday double high at 132.81, and March/April triple top at 133.35/50.

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