GBP/JPY: Showing signs of stabilization - SocGen

Research Team at Societe Generale, suggests that the GBP/JPY has been showing signs of stabilization after forming a low near 151, projected target for the third wave and the 50% retracement (log) of 2011-2015 up trend.

Key Quotes

“Since then it has been undergoing a pullback and has crossed above a descending channel that encompassed the down move since last year. The pair is now probing the neckline of an inverted H&S at 162. A sustained move above will lead to a larger recovery initially towards 165 and probably even towards previous lows of 168. Very short term though, the indicators are close to resistance levels and a retracement can’t be ruled out towards daily channel limit at 158.”