Forex: GBP/JPY, set for reversal or continuation?

FXstreet.com (San Francisco) - GBPJPY managed to regain all of its previous week's losses by closing the first trading week in October up 0.8% at 126.85. The 50-week EMA helped to support price and offers at a 61.8% Fibonacci level capped rallies at 127.78 Friday; price then printed a daily pin - behavior that often occurs at market highs and lows. "While we expect yen stability over the near-term, our expectation for a gradual strengthening in the pace of global economic growth suggests some moderate yen weakness over the medium-term," says Vassili Serebriakov, Currency Strategist at Wells Fargo today in a research note.