Forex Technical Update August 24, 2010
Tools:
Simple Moving Average(SMA) 50-period (red), 200-period (bold, gray)
RSI-14 with Simple Moving Average 5-period of RSI attached.
Fibonacci Study
Elliott Wave Principles
Market and Price Action (patterns, candlesticks)
Multiple Time-Frame Analysis GBP/JPY Points to 119
ftu_082410_gbpjpywk

  • Week: This week continues to see strengthening in the Japanese Yen. The anticipated support for the GBP/JPY pair has been broken, and a strong decline can be expected.
  • We can see the counter-trend breakout in the weekly chart. A swing projection of the previous downswing targets 119.00 the low in 2009.

ftu_082410_gbpjpyd

  • Day: The daily chart shows today's action as the trigger and confirmation for the bearish outlook.
  • The first near-term target may be 126. This is the 61.8% expansion of the previous swing. This may be where the market needs a breather before extending the decline to 100% of the previous swing.
  • One scenario that may weaken this outlook is if today's price action closes above 130.50 area by the end of the US session.

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.