Technical analysis of GBP/JPY dated 07.09.2012
Right now GPB/JPY pair in its descending trend from 2007 year is in the lowest fixed prices during its recent 20 years. As it is obvious in the picture below the bottom price of 2009 year has prevented from more descend of the price, once in 2011 and twice in 2012 and finally the price has been ascend. Right now the price by reaching to the supportive level, is stopped from more descend and it is ascending now.
According to the heavy and powerful descend which is fixed from 2007 year; there is a vacuum in monthly chart of this currency pair which shows the potential for ascending of the price, and until the supportive level is preserved in this currency pair, the reverse and ascend of the price is possible. In daily time frame, as you see in the picture below, the descending trend line is broken with the three top prices and the price is in top of 5 days moving average and shows the possibility of more ascends in this currency pair.