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GBPJPY Analysis: Correction to the uptrend

FX:GBPJPY   British Pound/Japanese Yen
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GBPJPY             has been in an extreme uptrend. It is very clear in the weekly charts, where there is a 'Cup and Handle' formation of sorts, with a target towards 180 regions. But past 7/8 weekly candles have been bullish , so a correction is due.

Weekly 14 RSI has hit resistance at 80 region. Past RSI values shows corrections happening at these levels.

Take either short positions but with caution, or wait for price to complete the correction to 168 region to enter long again.

Next week British Services PMI is due. Last month this was the weakest link, a lower than expected reading could be very bearish . A better than expected reading could see price move up to take pending sell orders.

BoE meeting is also due out on Thursday. Should be a non-event in most cases. Don't see any reason why MPC             would alter interest rates. They've already taken the FLS             out of housing, so the 375bn asset purchase program should also be unchanged. There could possibly be some dissent among BoE members on account of a better than expected improvement in unemployment . But housing is a big concern so the BoE would definitely be careful in their wording.

Not much of news from Japan for most of this week, so events from the UK and US are likely to be the ones to watch.

So conclusion: Either short the pair for some quick pips (with a certain risk considering its a downtrend) or wait for the correction to enter long positions.
And the weekly chart:

snapshot
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