Forex Technical Update July 5, 2010  GBP/JPY: Topped off at 133.80?   

  • 4H and 1H: The GBP/JPY pair may have topped off at the 133.80 level. In the 4H chart, this is the 61.8% retracement of the previous downswing. The market attempted break this level, but formed a topping action.
  • The market has then declined and is now at 132.50 level, 50% retracement of the upswing that started last Thursday.
  • If the market breaks below 132.20, it is likely to continue lower to 130, completing a swing projection.
  • The 1H chart shows that in the near-term, we may have a bullish attempt. A bullish attempt can help determine whether the market topped off at 138.00, or whether this is a correction to be followed by a bullish continuation.
  • If the market rallies above 133.50, then we may be still in a larger scale correction rally towards 134.50 area.

  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.