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
- GBP/JPY has followed a bullish wave count, and basically rallying in a channel, within a larger channel seen in the 4H chart.
- The RSI continues to make new highs, suggesting a sustainable bullish momentum breakout. However, the price level has yet to break above an important channel resistance seen int he Daily chart.
- As the market tests 132.00, it will be testing this declining channel resistance.
- Look for topping action there.
- The wave count in the 4H chart suspects we could be reaching the end of a second bullish impulse wave.
- Now if there is a decline from topping action between 131.50 and 132, we can expect a decline to test 129.50. A break below suggests the 2 bullish impulse waves were part of a correction. However, if the market remains above 129.50, the market is likely to develop another bullish impulse wave and then should break above the declining channel seen in the daily chart below.
- You can also see in the daily chart that we are about to test the 200SMA. Tomorrow is Friday, and I suspect there will be a retracement from this week's rally from near the 132.00 level. Then we should monitor the 129.50 area for support.
Will the GBP/JPY remain in the channel? Is the Japanese Yen opening to weakness? We would love to hear what you think.
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Fan Yang CMT
Chief Technical Strategist
Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. FXTimes will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analysis.