Forex Flash: GBP/JPY buy with target in the 137.05/140.00 region – Danske Bank
Forex pairs in this Article »
GBP/JPY
FXstreet.com (Barcelona) - After bottoming in the 131.60 region, the cross is now recovering some ground as risk appetite is intensifying, accelerating the outflows from the safe haven.
The strength in the cross has been also bolstered by an improvement of the manufacturing PMI print in the UK economy to 49.1 during November from October's 47.3
Chief Analyst A.L.Rasmussen at Danske Bank assesses the recent break above Oct./Nov. highs in the 129.60/65 region and the negative trend line set from the 2011 highs around the key area at 140.00
"Studies are positive and moving averages are rising in support of higher levels. The trend line break has completed a near two-year reversal area, and the year to date high at 133.45 (21 March) is now being approached. This level shields 135.10, the 76.4% retracement level of the 140.00 to 116.85 negative cycle. This region, in turn, protects 137.05 ahead of the extremely strong barrier/level at 140.00. The multi-month base/tightening area, however, suggests potential for acceleration through 140.00, on a long-term basis", he argues, and recommends "Stay long or buy into dips for gains to 137.05/140.00".
The strength in the cross has been also bolstered by an improvement of the manufacturing PMI print in the UK economy to 49.1 during November from October's 47.3
Chief Analyst A.L.Rasmussen at Danske Bank assesses the recent break above Oct./Nov. highs in the 129.60/65 region and the negative trend line set from the 2011 highs around the key area at 140.00
"Studies are positive and moving averages are rising in support of higher levels. The trend line break has completed a near two-year reversal area, and the year to date high at 133.45 (21 March) is now being approached. This level shields 135.10, the 76.4% retracement level of the 140.00 to 116.85 negative cycle. This region, in turn, protects 137.05 ahead of the extremely strong barrier/level at 140.00. The multi-month base/tightening area, however, suggests potential for acceleration through 140.00, on a long-term basis", he argues, and recommends "Stay long or buy into dips for gains to 137.05/140.00".
Free Annual Reports
