Keeping up with the GBPJPY recommendation from the previous day, the pair lost ground throughout the U.S. trade after rising to a high of 143.65 and closed just barely above the 20-Day SMA at 143.02. As a result, I stayed on the sidelines to wait for additional confirmation and I am certainly glad that I did given the sharp decline that we’ve seen during the overnight trade. However, the pound-yen appears to be finding intraday support ahead of the 10-Day SMA at 140.98 as the overnight decline stalls at a low of 140.99. As the GBP/JPY maintains the weekly range, I have placed a long entry at 141.45, the 2/10 high as I expect to see a corrective retracement, and have set the target to 142.73, the 20-Day SMA, with a tight stop at 140.98. the 10-Day SMA.
