GBPJPY Candlesticks and Ichimoku Analysis

	Last Candlesticks pattern	Time of formation	Trend bias
Weekly	N/A	N/A	Sideways
Daily	Doji	12 Jun 2009	Up

As indicated in our previous update, the Ichimoku cloud bottom continued to cap sterling's upside and price finally broke below the Tenkan-Sen, sugesting the rise from 118.87 has at least formed a temporary top at 162.60 earlier and although price has recovered from 146.75, upside should be limited and as long as the Ichimoku cloud bottom (now at 158.30) holds, stronger correction of the aforesaid rise would take place, break of 146.75 support would bring further fall to 143.06 support, then towards the Kijun-Sen (currently locating at 140.73)

On the upside, whilst recovery to 154/155 level is quite possible, price should falter below the Ichimoku cloud bottom and drop again to aforesaid downside targets. Only a weekly close above the cloud bottom would revive our previous bullish scenario and bring test of 160.25 resistance, break there would confirm upmoev from 118.87 has resumed and bring retest of 162.60 and eventually towards 165.06 minor resistance but calculated resistance at 167.38 (50% Fibonacci retracement of the fall from 215.89 to 118.87) should cap sterling's upside.

Based on ActionForex.com Technical Outlook

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