Forex Technical Update
GBP/JPY 4HChart 6/21/2012 7:38AM EDT
As we gear up for the 6/21 US trading session, the GBP/JPY is making new highs for June. We are still in a correction against the decline that started in March, but this week, the GBP/JPY pushed up above the declining trendline extending back to March, and the last couple of session's price action has been confirming that the breakout is bullish not just sideways.
The 4H RSI shows persistent bullish momentum. (After pushing above 70, failed to break below 40, and returning to 70.
In the 4H chart, you can see the next resistance pivot at about 126.40.
The daily chart shows that the 126.40 level was seen as a pivot going back to Feb and March. Above that the 127-127.05 area contains psychological resistance and a previous support pivot. With the daily RSI returning toward 60, if the market is still bearish, we should find resistance between these two key levels. Note that 61.8% retracement of the swing from late April through May (131.80-118.72) is 126.80.
GBP/JPY 4HChart 6/21/2012 7:43AM EDT
Fan Yang CMT is a trader, educator and a Chief Technical Strategist for FXTimes - provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.
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