Forex Analysis: GBP/JPY Classic Technical Report 12.12.2012

Prices are approaching resistance at 133.48, the March 21 high. A break higher broadly exposes the 114.6% and 123.6% Fibonacci extensions at 135.63 and 136.95. Near-term support is at 131.45, with a break below that aiming for rising channel resistance-turned-support at 130.79. Negative RSI divergence continues to warn of ebbing momentum, hinting a reversal may be ahead.

Daily Chart - Created Using FXCM Marketscope 2.0

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

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