The move below 184.25 now triggers a decline to test the lower boundary of the long term ascending channel at 182.90.
A breakout of the channel would trigger a long-term bearish signal. We are forecasting GBPJPY at 161.00 in 2016,” MS projects.
Turning to AUD, MS notes that the Australian trade deficit has deteriorated once again in October, as exports declined by 3% on the month.
“The services PMI has also weakened further in November, not boding well for the anticipated rebalancing of the economy from mining into services,” MS adds
“We see the current AUDUSD rebound as providing a renewed selling opportunity,” MS advises.
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