Skip to content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
GBP/JPY Rally Eyeing Near-term Resistance Targets

GBP/JPY Rally Eyeing Near-term Resistance Targets

Michael Boutros, Strategist
  • GBPJPY rally approaching near-term resistance objectives
  • Updated targets & invalidation levels
  • Check out FXCM’s Forex Trading Contest!

GBPJPY Daily

Chart Created Using FXCM Marketscope 2.0

Technical Outlook: GBPJPY is attempting a breach above a sliding parallel extending off the late-November low with the broader focus weighted to the topside while above 1.5617/35. This region is defined by the 50% retracement of the advance off the 2011 low & the February low-day close. We’ve been following this trade on SB Trade Desk since rebound off the low median-line earlier this month with the advance through the monthly opening range approaching some near-term resistance targets that could offer a reprieve for the yen. Broader topside objectives are eyed at 162.68 & 163.96- both of which converge on longer-term median-lines and could provide more significant resistance.

Avoid the pitfalls of near-term trading strategies by steering clear of classic mistakes. Review these principles in the "Traits of SuccessfulTraders” series.

GBPJPY 30min

Notes: Last night’s rally in Asia constituted an objective break of the weekly opening range, keeping the topside bias in play. We closed out some long-exposure earlier today with the immediate advance at risk heading into confluence Fibonacci resistance into 160.59/63. Interim support rests at 159.29 backed by 158.47 with our near-term bullish invalidation level pegged at 157.31. A breach above this key resistance threshold eyes subsequent topside targets at 161.75 and the monthly high at 162.80. Continue tracking this setup and more throughout the week- Subscribe to SB Trade Desk and take advantage of the DailyFX New Subscriber Discount.

Keep in mind this is a wider range scalp with a quarter of the daily average true range (ATR) yielding profit targets of 54-58 pips per scalp. Added caution is warranted headng into UK Retail Sales data tomorrow with the release likely to fuel increased volatility in sterling crosses. Check out SSI to see how retail crowds are positioned as well as open interest heading into the close of the week.

Looking for trade ideas? Review DailyFX’s 2016 2Q Projections !

Relevant Data Releases

Other Setups in Play:

---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

Join Michael for Live Scalping Webinars on Mondays on DailyFX and Tuesday, Wednesday & Thursday’s on SB Trade Desk at 12:30 GMT (8:30ET)

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES