GBP/JPY

The support that the USD got at 80.0 against the JPY was as strong as we estimated and the Yen weakened to 81.2 against the USD. This helped the pound to rise against the Yen and the weekly chart gives an interesting point of view regarding the pair GBP/JPY. The trend is clearly bullish and the arrangement of the candlesticks, as well as the fact that the pair reached 40% Fibonacci levels, indicate that a bullish reversal is about to occur, if the pound crosses above the weekly high at 130.50. A successful break-up of this pick might take the pair above 133.0 again. Another supporting element for the pair is the fact that the 20 EMA is about to cross above the 50 EMA, which means that the prices are increasing.