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27.06.2014 07:30 AM
Short term forecast of GBP/JPY for June 27, 2014

GBP/JPY

Short-term view-

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The pair is enjoying its bull run from 116.80 and is rallying all the way to 174.75 levels. It pauses its rally at 174.75 and has been consolidating near 200-day Ema. The monthly momentum indicators favor selling mode. We recommend next buying only above 174.75 for a target at 178 and 185 levels. On the down side, it has strong support at 168; a break below this, we can see 164 levels.

KEY MONTHLY SUPPORT LEVEL 168

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In the weekly chart, the pair is making an ascending triangle. If we get an upside breakout, we can again see a huge upside target aiming at 185 levels. But the weekly RSI is indicating a negative divergence. If the pair gives a downside break out, it can fall further to 169.50, 167.75 and 165 levels.

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