Talking Points
- GBPJPY rally stalls at ML resistance- long bias at risk near-term
- Updated targets & invalidation levels
- Event Risk on TapThis Week
GBPJPY Daily
Chart Created Using FXCM Marketscope 2.0
Technical Outlook
- GBPJPY weekly opening range in focus after tagging MLP resistance last week
- Rally is vulnerable near-term below this week’s high ~195.50
- Interim support at highlighted region into the R1 backed by 192.50
- Broader bias remains constructive above the February ML / 189.70
- Breach of the highs targets the upper MLP / 196.46 (key resistance)
- Daily RSI in overbought territory- constructive
- Daily close sub-70 would validate near-term correction lower
- Event Risk Ahead: BoJ Minutes tonight & Japanese Jobless Rate & CPI on Thursday
GBPJPY 30min
Notes: GBPJPY is has set a tight weekly opening range after rebounding off key resistance last week at the upper median-line parallel dating back to the 2015 lows. Intraday momentum has continued to hold-60 resistance and the pair remains vulnerable for a setback while within the proposed ML formation off last week’s high. Interim support rests at 194.59/64 with a break below targeting confluence support around 194. Subsequent support objectives are seen lower at 193.16/20 & 192.50.
We’d be inevitably looking to buy this pullback with a breach of the highs targeting last week’s high at 195.81 backed by more significant resistance up at 196.37. Bottom line: look for a break of this initial weekly OR to offer further guidance on the near-term directional bias with a break of the lows shifting the immediate focus lower. Event risk is limited on the pair this week with tomorrow’s Japanese CPI print highlighting the docket. A quarter of the daily average true range yields profit targets of 33-36 pips per scalp.
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Relevant Data Releases
Other Setups in Play:
- GBPUSD Pullback to Offer Favorable Long Entries- 1.57 Key Support
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- Scalp Webinar: Bearish USD Technical Outlook to Face Upbeat FOMC
- USDCAD Breakdown at Initial Support- Short Scalps Favored Sub 1.24
- EURNZD Threatens Key Resistance Ahead of RBNZ- Longs at Risk Sub 1.59
---Written by Michael Boutros, Currency Strategist with DailyFX
Follow Michaelon Twitter @MBForex,contact him at mboutros@dailyfx.com or Click Here to be added to his email distribution list
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