Forex Analysis: GBP/JPY Classic Technical Report 11.14.2012

Prices are testing support at 125.48, the 38.2% Fibonacci retracement level. This barrier is reinforced by a rising trend line connecting major lows since late August. A bounce here sees initial resistance at 127.07, the 23.6% level, with a break above that initially targeting 128.05. Alternatively, a drop through support exposes the 50% Fib at 124.20 and a key channel bottom now squarely a the 124.00 figure.

Daily Chart - Created Using FXCM Marketscope 2.0

--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com

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