Fan Yang 10:15 AM EST November 24th, 2009
GBP/JPY Stalking Alternative Scenarios
- Weekly and Daily: The GBP/JPY remained in consolidation since we last noted it on Nov.6. (Refer to Weekly Technical Update 11.06.2009). We now have the pair at the support of the range between 151.50 and 146.00.
There are a couple of scenarios. The first one, looking at the weekly, is a long-term retracement decline to the 130.00 area. This would be a swing projection to complete a Gartely pattern at the 78.6% retracement level.
Another scenario in the lower daily timeframe, is the support at 146.00. A subsequent rally may stop at about the 152.00-154.00 area if the market ranges. But the market might continue to push pass that, we can expect resistance below 159.00 the 78.6% retracement area.
We will continue to stalk this pair. Perhaps this week not provide any signals since its US holiday Thanksgiving on Thursday (11.26) and trading is not expected to pick up until after the weekend.