Dislikednot sure if it will today, but eventually i think it will target 121.... i know everyone is thinking the all times low at 129 but when were these all time lows respected in this massive downtrend since it started? that area my even serve as resistance more than it is as support....
if we go below 129.. there is NOTHING below, no area of demand, no support, screw fibs (who knows which level will hold?)... and i personally support the idea of 2 digit GJ now, OR, GJ will be in parity with EJ...Ignored
When GJ made its all time low of ~129 in April 1995, GU had a monthly low of ~1.5850 and UJ ~79.60, so that low was as a result of extreme Yen Strength.
I have seen posts claiming that the BOJ will act if UJ drops below 90 as this will hurt their exports, so if this is correct we might consider 90 as a low for UJ - remember that its low this October was ~90.90.
To find the next low for cable, we have to go back to June 2001 when it hit ~1.3650 some 1000 pips lower than today.
IF both of these lows were hit simultaneously it would imply that GBPJPY would be around 123.00. Thus with a small overshoot in either of the pairs, GJ could easily reach the 121 area....
PS In January 1985 cable made a low at ~1.0420.....http://www.forexfactory.com/images/icons/icon11.gif http://www.forexfactory.com/images/icons/icon11.gif
Trading Levels with WRBs