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 is consolidating, and still likely to be in wave 4, if the count seen in the 4H chart is correct. There is a bearish divergence here, but there was a positive reversal as well suggesting the bullish momentum is not over. 1.3250 remains an important level to monitor for as resistance against a rally towards the 1.35 area.
- The bearish outlook is limited to 1.30 at the moment, as we anticipate another bearish swing to complete wave 4.
- The 1H chart shows the market in a likely flat correction.
- The GBP/JPY did complete a diagonal triangle and came crashing down after the anticipated wave count from last night's post on GBP/JPY.
- The 1H chart shows a bearish swing projection that will target above the 130.00 area, and near the previous low, making this correction a flat correction.
- The 15min chart shows that after breaking below the diagonal triangle, the market has corrected 78.6% of that decline.
- The market now looks like it wants to test 132.50 first.
- Therefore, the near-term might still be bullish towards 132.50, but the shor-term outlook to start next week, might be another wave down towards 130.50, after which, we might resume a rally to break above 132.50 to target the 135.00 area (maybe a bit lower).
Is the GBP/JPY going to reach 135.00 before it breaks below 130.00? We would love to hear what you think.
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Fan Yang CMT
Chief Technical Strategist