GBP/JPY Daily Outlook
Daily Pivots: (S1) 210.51; (P) 212.27; (R1) 213.40; More
GBP/JPY's rebound from 204.49 was limited at 214.00 and retreats from there continues today. With 4 hours MACD dragged below signal line, an intraday top is in place and outlook is turned neutral for the moment. On the upside, above 214.00 will indicate rebound from 204.49 is still in progress for inner falling channel resistance (now at 218.96). On the downside, however, below 207.05 minor support will indicate that rise from 204.49 has completed and will bring retest of this low.
In the bigger picture, an important medium term top is formed at 251.09 after completion of a medium term head and should top pattern (ls: 241.47, h: 251.09, rs: 241.35), with the medium term trend line support taken out too. In other words, the whole up trend from 148.19 should have ended at 251.09 already. Having said that, as long as the current rebound is limited below 221.25 support turned resistance, the fall from 241.35 should still be in force.
However, a short term bottom is in place after GBP/JPY was supported by double channel support, on bullish convergence condition in 4 hours MACD and RSI. Firm break of 204.49 is needed to confirm recent down trend has resumed for psychological support at 200, which overlaps with next medium term fibo support of 50% retracement of 148.19 (006) to 251.09 (07 high) at 199.64. Otherwise, further consolidation could still be seen with risk of another rise before completion.
Daily Pivots: (S1) 210.51; (P) 212.27; (R1) 213.40; More
GBP/JPY's rebound from 204.49 was limited at 214.00 and retreats from there continues today. With 4 hours MACD dragged below signal line, an intraday top is in place and outlook is turned neutral for the moment. On the upside, above 214.00 will indicate rebound from 204.49 is still in progress for inner falling channel resistance (now at 218.96). On the downside, however, below 207.05 minor support will indicate that rise from 204.49 has completed and will bring retest of this low.
In the bigger picture, an important medium term top is formed at 251.09 after completion of a medium term head and should top pattern (ls: 241.47, h: 251.09, rs: 241.35), with the medium term trend line support taken out too. In other words, the whole up trend from 148.19 should have ended at 251.09 already. Having said that, as long as the current rebound is limited below 221.25 support turned resistance, the fall from 241.35 should still be in force.
However, a short term bottom is in place after GBP/JPY was supported by double channel support, on bullish convergence condition in 4 hours MACD and RSI. Firm break of 204.49 is needed to confirm recent down trend has resumed for psychological support at 200, which overlaps with next medium term fibo support of 50% retracement of 148.19 (006) to 251.09 (07 high) at 199.64. Otherwise, further consolidation could still be seen with risk of another rise before completion.
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