GBPJPY: Short Term Outlook Still Remains To The Upside.

GBPJPY – While GBPJPY may be hesitating or even vulnerable, it remains baised to upside short term. However, it will have to return above the 125.81 level, representing its Jun 21’2012 high and the 126.16 level to trigger its short term uptrend. As long as it holds above its rising trendline (red), this view remains intact. A decisive breach of here will call for more upside towards the 127.08 level with a loss of here creating scope for further upside risk towards the 128.84 level. Further out, resistance resides at 129.50 level. Its daily RSI is bullish and pointing higher supporting this view. The alternative scenario will be a pullback towards the 124.01 level where a reversal of roles as support is expected. However, if this fails, further declines could build up towards the 122.38 level where a violation will set the stage for a move further lower towards the 121.77 level. But for the cross to resume its broader medium term weakness, it will have to break below the 118.78 level. On the whole, the cross remains biased to the upside on correction nearer term.