GBPJPY: Bear Pressure Set To Extend Further (Week Ahead)

GBPJPY – With a follow through higher seeing GBPJPY breaking and closing strongly above the 135.47 level, its Feb 18’2011 high. It now looks to target its psycho level at 140.00.

While price hesitation on an initial test of that level cannot be ruled out, its eventual break will set the stage for further strength towards the 142.00 level with a turn above that level allowing for additional bull pressure towards the 145.95 level where its April 2010 high is located.

Guest post by  www.fxtechstrategy.com

Its weekly and daily RSI are bullish and pointing higher suggesting further gains. Alternatively, on any pullback from its current price level, GBPJPY should target the 135.47 level, its Feb 18’2011 high. We expect a reversal of roles as support to occur at that level and then turn the cross back up but if this level breaks, further weakness should aim at the 132.905 level, its Mar 22’2011 high.

All in all, the cross remains biased to the upside in the short term as it looks to strengthen further in the new week.