Trend of the Day –GBPJPY
The year is 1995. Bill Clinton is president of the United States, Mexico’s economy receives a bailout, and OJ Simpson’s verdict is not guilty. Batman Forever is the #1 movie in 1995 and GBP/JPY is trading at 128.44. Thirteen years later, a Clinton is back in the spotlight, the global economy needs a bailout and OJ Simpson is found guilty. Batman Dark Knight is the #1 grossing movie of 2008 (so far). Amid all this, GBPJPY is a little more than a 1100 points from reaching the same level it was in 1995. With an average daily range of 617 pips, this pair could be there by Monday. GBPJPY has managed to erase 13 years of gains from its July 12th 2007 high of 248.88 to its present point below support at 140.00. Look for a retest of the old support at the 140.00 to target 128.44 It’s amazing how things seem to repeat; even in the currency market.