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 is in a decline after finding resistance at 134.20. The market is however held above support near 133.20, which use to be resistance. This is also 38.2% retracement of the rally since Feb 8.
- The RSI in the 1H chart is testing 40, which means the momentum in the short-term is still bullish. If the 133.20 area holds, and the market rallies above 134.20, we are pushing further into the resistance zone.
- In the daily chart we see the 135.00 area as the short-term target for the bullish attempt. A break above that targets 137.75, with a swing projection satisfying near 136.40.
- This scenario is most probable if the current support at 133.20 holds and the market breaks above 134.20.
- As far as the RSI in the daily, it is slightly bullish, but we need it to break above 70 to confirm a bullish outlook. For now the outlook is bullish in the short-term, but as we can see in the daily chart, the context is a consolidation that is essentially sideways since mid-2010.
Is the GBP/JPY going to continue the bullish mode and momentum towards 137.75? We would love for you to share.
Subscribe and become a member to share your views and join live discussions as well as webinars about the markets.
Fan Yang CMT
Chief Technical Strategist