On weekly chart the market closed “below” 38.2% Fibonacci for the 3rd week on a row.
For the last two weeks the support was always above the previous week. First the 50% fib line where the trend reversed then at 223.75 support (8th August 2006 high point so resistance became support) last week’s support was at 224.80 the same support for 19th august 2007. The trend has reversed and it is consolidating to move higher.
Right now GBP/JPY is coming down due to the heavy selling of GBP/USD based on Friday’s US CPI data release. Next week if cable can hold above 2.0000, USD can push JPY to 112 there might be a very good long position to be taken at 225.60 based on my chart that is where GBP/JPY should have a strong support next week.
The weekly CCI is about to go above -100, from a technical point of view that is significant. However, due to the strong greenback, cable might retrace to that level next week.
Next week we will see some heavy release coming up for GBP/JPY. Next week’s fundamental economic forecast and possible consequences will be published on Saturday night (16th December 2007)
Filed under: GBP/JPY
