GBP/JPY Outlook - The week of December 24, 2012

1. GBP/JPY - The Week Of December 24, 2012
British Pound - Japanese Yen (GBP/JPY) went as high as 137.86 and then went into a volatile
sideways mode over the week's low of 135.45. The weekly closing was at 136.21.
The support over 135.45 indicates that the support of the psychological 135.00 is in play and the
underlying bullish sentiments for the near-term remain in place. However, the wide gap between
the highs and the opening prices of the last 3 trading days' red candles make us expect some
further downward consolidation initially.
If resistance near 137.00 holds then on the downside any decisive break below 135.80 should
take GBP/JPY towards a minor support near 134.45. This support is derived by previous price
action as well as 22-day EMA.
Any break and sustained price action below 134.45 should find a support near 133.20. This level
is the combined support of the 38.2% retracement of the upward move during November 12th
and December 19th and the previous resistance which should act as support. Please check this
GBP/USD chart alert. Any decisive break with any sustained price action below this support will
neutralize the outlook for further immediate gains.
If the mentioned immediate supports hold and a break over the recent 137.86 takes place then we
would expect further gains towards a strong resistance zone of 139.80/139.40. The psychological

2. resistance of 140.00 ranges should start coming into the picture in this zone. Please note that
140.02 had proved to be a very strong resistance on April 8, 2011 and a decisive break of that is
required for an indication of a possible reversal.
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