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Supports: 121.588; 121.065; 120.319
Outlook
Bearish tendency, which lasted for the lastthree days was stopped today, and now a bullish reaction takes place. If the movement upwards proceeds, then GBP/JPY might reach a 20-day SMA at 122.700, which might prove to be a strong resistance for the current rally. If it fails to reverse trend back to bearish, then next resistance at 122.900 (Monthly PP) might give some bearish impetus. At the same time, RSI indicator is neutral, meaning that GBP/JPY is neither over-bought nor over-sold.
Traders' sentiment
Traders at SWFX market remain optimistic about the future value of the British Pound, as 74% of traders hold long positions on GBP/JPY currency pair. The orders are distributed more neutrally, because only 59 of traders ordered to buy GBP/JPY currency pair, expecting that the Japanese Yen will depreciate against the British Pound.