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
Multiple Time-frame Analysis
- The GBP/JPY pair has been choppy, within an expanding pattern. The market is seen as neutral here, but there is a bearish bias when looking at the higher time-frame (daily).
- In the near-term, we see a bullish attempt in the 1H chart, coming out of a triangle support at the 129.80 area.
- This rally is now pausing at 130.80.
- There should be another upswing after this pause to complete a correction pattern. The 50% retracement level near 131.30 might provide resistance.
- The bearish outlook would not be valid if the high of 132.65 is broken, and the bullish target would be the 135.00 area.
- On the more probable downside, the GBP/JPY can break below 128.00, it is likely heading down towards 127.05(78.6% retracement) and eventually the 125.50 low.
- The GBP/JPY in the daily time-frame shows the bearish bias. Even below the current target at 125.50, a swing projection targets the 124.30 area.
Has the GBP/JPY been topping, to be followed by a bearish trend? We would love to hear what you think.
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Fan Yang CMT
Chief Technical Strategist