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 was heading towards 129.50 as noted last Friday, but the 131.00 pivot is providing support to the current decline.
- The decline appears to be in an impulse manner, and another such decline can be expected later this week.
- In the meantime however, we saw a bullish divergence, and the market rallying after the setup.
- The 133.30 level can provide resistance to our first leg of correction. Another leg of correction rally can bring the pair towards the 134.15 area, between 61.8%(133.80), and 78.6%(134.55).
- If indeed this is the path of the correction, the market should find topping around this 134.00 area, and decline towards 129.50 later this week, although acceleration would probably not take place before this Friday, when the market will be monitoring the US NFP.
- The daily chart shows a market still slightly bullish as the market failed to confirm the break below the 200SMA. The candlestick is strong, and therefore at least a meaningful correction can be expected.
- If the market continues to rally, we do have target of 136.40 then 137.75.
- The more likely bearish scenario should test 129.50. Below that we are looking at 126.50.
Will GBP/JPY continue south after the current rally? We would love to hear what you think.
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