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, with a bullish bias, and finally accelerated higher yesterday. However, the rally is having trouble at the 135.00 resistance level, and the market has brought the pair down towards 134.00 so far today.
- A very healthy bullish trend should see the 134.15 level support another rally. But if it does not, look for the market to find support at the 133.10 key pivot seen in the 4H chart. This is also the location of the 61.8% retracement from the rally that started near 131.50.
- The bullish outlook to 136.40 is still valid, but the bearish price action is a bit concerning, so let's see if the market reacts with a rally from 133.10.
The near-term bullish target for a rally from 133.10 should be 134.15, just in case this is a bull trap. A break above that then should continue to 135.00, and then to our higher targets of 136.40 and 137.75.
- A break below 133.10 should start the consideration of a decline in the towards 129.50 heading into next week.
Will GBP/JPY push higher to satisfy an equality swing at 136.40? We would love to hear what you think.