- 4H and 15min: The projection I posted on the latest weekly update for GBP/JPY is 123. There are however some supports that need to be broken, and momentum to be had.
- So far, the market is consolidating above 131.00 which is now becoming the neckline to a possible head and shoulder pattern. A break below 131 has very bearish implications. The RSI in the 4H time-frame broke below 40, but did not go into the oversold zone, suggesting the downswing is yet to come.
- The 123 level is coincident with fibonacci levels of extended retracement. 125.70 is a pattern breakout projection. With the bias bearish in the long intermediate term, I am prone to suggest the higher likelyhood to reach 123. But I can't because getting to 123, means 100% that it will go through 125.70.
- What I can say is that the 15-min chart is showing some start to this bearish momentum. The RSI went to 23 in the oversold zone and now is resolving this condition with a correction.
- Look for topping near 132.70, where there is a confluence of 61.8% retracement and simple moving averages (50 and 200).
Fan Yang Currency Analyst Commodity Trading Advisor
Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. FXTimes will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analyses.
All screenshots are made from VT Trader 2.0 and are of actual market data at the time of the screenshot.