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, remaining in sideways action. After an initial bearish tilt, the market now shows bullish bias.
- Note however that the RSI in the 4H chart has not broken above 70, so any bullish outlook need to be cautioned and seen in the context of a ranging mode, not bullish mode.
- However, the RSI does show a positive reversal signal, and again without having the RSI tag 70 first, this is not as strong as if it did. There is no prevailing bullish momentum to help build the bullish case.
- Nonetheless the projection is 134. The 133 level seems to be holding the rally in check at the moment.
- The 1H chart shows a strong bearish attempt as the market is held below 132.90 (78.6% retracement).
- For a healthy bullish attempt, this bearish attempt needs to be held above 132.35, otherwise, it is likely to miss 134.
- The bearish outlook is shelved at the moment, unless the market can break below the rising support seen in the 1H chart. Even the bearish scenario in the very short-term is limited to 129.50.
- Very choppy, twisting consolidation action at the moment. Let's see if indeed there is a bullish bias.
Has the GBP/JPY made its mind or will it continue to range? We would love to hear what you think.
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Fan Yang CMT
Chief Technical Strategist