Like most Yen crosses, the GBPJPY has dove hard these past few weeks - though this is one of the more attractive technical pictures among the group. After marking a strong break of its bull trend, now facing the next major level of support around 169.50. This is a moderate tech floor. Meanwhile spot is the furthers from the 200-day MA since October 2011 - so 'stretched'.
Stretched doesn't mean it has to turn. Extreme is a relative measure. So, does it break or hold? Stretch further or snap back? It may not happen today or even this week, but I think it keeps going.
Stretched doesn't mean it has to turn. Extreme is a relative measure. So, does it break or hold? Stretch further or snap back? It may not happen today or even this week, but I think it keeps going.