Forex Analysis: GBP/JPY Classic Technical Report 12.18.2012

Prices gapped higher in the wake of Japan's general election and promptly corrected lower, breaking through the 61.8% Fibonacci expansion at 136.12 to target the 50% level at 135.26. A further push below that exposes the 38.2% Fib at 134.42. The 136.12 level has been recast as near-term resistance, with a reversal above that aiming for the 76.4% expansion at 137.19.

Daily Chart - Created Using FXCM Marketscope 2.0

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

To contact Ilya, e-mail ispivak@dailyfx.com. Follow Ilya on Twitter at @IlyaSpivak

To be added to Ilya's e-mail distribution list, please CLICK HERE

New to FX? Watch this Video. For live market updates, visit the Real Time News Feed