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
Previous: Forex Notes (2/23)
- The GBP/JPY pair did not follow the bullish scenario we anticipated (to 136.40, 137.75) as the 133.10 support did not hold. The pivot now is at 133.25, so a pending rally should not break above 133.25, because it is likely a wave (iv), and should not overlap wave (i). There might be a correction soon because the RSI is dipping below 30, showing oversold conditions.
- However, we are likely in a bearish impulse wave, so we should not expect a significant rally until after wave (v). Then, after a corrective rally we can still expect further decline towards 129.50.
- The daily chart shows that the 129.50 level is an important pivot as well as 61.8% retracement. If the market can break below that, it is looking at the lows near 126. Indeed, sharp bearish price action suggests 129.50 might be just a conservative target.
Will the GBP/JPY retrace to the 129.50 level and will this level be respected as support? We would love to hear what you think.
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