Archived IMT (2009.10.19)

Although GBPJPY struggles to regain the 148.60s level (38% retracement of the 163-139.70 decline), weekly oscillators (stochastics, MACD) are showing improved prospects for the pair, suggesting extended upside towards 150.80. Nonetheless, the daily oscillators suggest that 146.80 could emerge prior to the upcoming rally. Although the Bank of Japan has signalled improved conditions, markets are reluctant to buy yen in the face of rallying equities and potential jawboning from Japanese policymakers.