The GBPJPY has fallen considerably since September to reach a low of 165.98 on 10/10, but has bounced higher over the past few days, and may offer profitable opportunities for forex traders.
Currency Pair: GBP/JPY Chart: 60 Min Charts Short-Term Bias: Bearish
Analysis Update
The GBPJPY has moved slightly higher over the past few hours, but looks to be finding resistance near 178.36 (38.2% Fib level of 165.98-198.34). The lack of momentum to move higher suggests that the pair will move back towards the 120 SMA over the next few days. I anticipate the pair to move back towards the lower end of its range over the week, and we may see the pound-yen move back towards the 10/10 low of 165.98 by next week. Meanwhile, the fundamental event risks scheduled for the next 24 hours may call for a change in our outlook.
Analysis
The GBPJPY has fallen considerably since September to reach a low of 165.98 on 10/10, but has bounced higher over the past few days, and may offer profitable opportunities for forex traders. Yesterday we saw the jump in the pair trigger an overbought RSI signal, and led the pair to pull back from its intraday high of 181.42. The failure to break above the 182.13 (50.0% Fib level of 165.98-198.34) and the divergence from the 120 SMA suggests that the pair may move to the downside over the next few hours of trading. Be sure to check out other Technical Reports from DailyFX for additional information on the major currency pairs.
To contact the author of this article, please email: dsong@fxcm.com
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