Simple Moving Average(SMA) 50-period (red), 200-period (bold, gray)
RSI-14 with Simple Moving Average 5-period of RSI attached.
Elliott Wave Principles
Market and Price Action (patterns, candlesticks)
Intraday pivots and Intermediate-term support and resistance
- The GBP/JPY broke out of the flat correction pattern, and is now breaking above a smaller flag pattern on its way to 131.00 and the declining trendline.
- The bullish scenario can extend further to 1.33, if it break above 131.70.
- The bearish scenario it tucked away until the 1H chart shows the RSI breaking below 40 and price level breaking back below 129.50.
- At the moment, we can see bullish impulse waves forming, and a swing projection after breaking above the flat pattern targets 131.65-131.70, the next resistance above 131.00, which the market still needs to break for the bullish scenario, which can end up extending towards 133.00.
- The EUR/JPY pair is likely in a zig zag correction rally. Look for the current rally to see resistance near 108.90/108.95.
- A decline from there should head towards 107.70 even if the market has turned bullish. It would be a correction decline. However, the market can also continue lower, and with a break below 107.70, we would open up the bearish scenario again with 106.80, and 106.00 as lower targets.
- If the market breaks above 109.00 however, it looks to target 110.00 area in the short-term.
- No much new development in the EUR/GBP today. The market basically continues to range between 0.8285 and 0.8345. A break above looks at the 61.8% retracement level near 0.8380. A break below continues the bearish attempt towards 0.82, and lower targets at 0.8144, and 0.8066.
Will EUR/GBP continue lower to the 2010 lows near 0.8066? We would love to hear what you think.
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Fan Yang CMT
Chief Technical Strategist
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 analysis.