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| Daily GBPJPY cross as of March 19 '12 |
The market potential of both cross rates have been significant after last Friday's sudden move after the news reports. The GBPUSD rally was likewise the catalyst for the GBPJPY cross to rally behind the EURJPY and have touched 132.42 high. The 130.75 Moving average would also serve as the initial support. Other technicians are looking for a continued pressure if risk appetite would remain on hold for the USD to move lower as it did last Friday's closing price. The weekly and monthly longer term outlook have been significantly bullish and remains to be tolerable for any drawback movement for the USDJPY relationship. Keep track of the closing prices above the previous day's closing and opening price levels.
And this was even contrary to its technical candle formation of a two consecutive weekly spinning top / doji especially located at the higher segment of its price range. And this was where other traders saw a possible correction but turned otherwise. The extension prices at the 132.40-133.00 will be its temporary topping out if and whenever a consolidation would be made. However, the GBPJPY would outpace the EURJPY by this coming week's trading since the USD may gain some lost ground on a daily correction.
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