And you all know the saying.
We closed the door on November and opened the December door straight into gains and the two long term fibs didn’t stand up to much. The 2008 swing would have got you around 40 pips of retraction from the 50 fib at 166.34 and the 2007 38.2 fib would have got you stopped out for a loss.
GBP/JPY monthly chart 02 12 2013
As I said in my analysis previously, I like a good, long term tech level but you have to show some caution to such levels in cross pairs as they are at the mercy of the majors.
What we can see though is some very bullish signals. The break of 163 was the first and opening above the 100 mma is another. The door really is open for a push up and we could easily see another another 1000 tacked on up to the 2008 61.8 fib at 178.03 and the 200 mma at 178.36.
We’re in a bull market where pullbacks are virtually non existent but anywhere back down towards 163 would be a screaming buy (dependant on the reason it was back down). If the market sets itself up for a Dectaper and is disappointed then we could we could get just that opportunity to load up for a March taper.