February 16th, 2011 
Paul Smith
GBP/JPY in a Throwback; 130.10 is Key Pivot (2/16 US Session)
GBP/JPY
- The GBP/JPY had a strong decline earlier today, but the market has since stalled. – The 1H 14-period RSI still shows bullish momentum, as the RSI failed to sustain a break below 40. On a break above 60, it should reflect a return to the bullish scenario. – However, the market is forming a flag pattern, and a strong bearish break below this pattern suggests a swing projection towards 130.50. – This would bring the pair down to test a rising support. We do also see 78.6% retracement of the prior upswing near 133.70. – A break below 130.10, should open up the bearish scenario, at least in the very short-term towards 129.50.
Will GBP/JPY establish a bullish trend, or will the bearish attempt extend to keep the pair in a choppy ranging mode? We would love to hear what you think.
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