After taking a hit from trading the NZDJPY last week, I have been keeping a close eye on the GBPJPY as it continues to retrace the decline from earlier this month, and we may see the pair trend higher over the near-term on the back of Japanese Yen weakness. During the overnight trade, the pound-yen extended the previous day’s advance to cross back above the 20-Day SMA at 143.02, and we may see price action work its way towards the January range, which lies just above the 144.00 level. As a result, if we see prices close above the 20-Day SMA by the end of the U.S., I may look to go long the pair, with a potential target at 146.18, the 100-Day SMA, but if we see a drop back below the 143.00 level, I will wait for further confirmation before taking another trade.
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