GBP/JPY: The market is finally in the process of correcting following the latest surge to fresh 2012 highs by 133.50. From here, we see risks for further weakness towards the 125.00 area, but ultimately any additional setbacks should be well supported in favor of a resumption of the newly formed bullish trend. We contend the cross has carved a major cyclical bottom and the longer-term risks from here are for continued strength. Only back under 122.00 would delay outlook and give reason for concern.
--- Written by Joel Kruger, Technical Currency Strategist
To contact Joel Kruger, email firstname.lastname@example.org. Follow me on Twitter @JoelKruger
To be added to Joel Kruger’s distribution list, send an email with subject line “Distribution List” to email@example.com