Guest Commentary: GBPJPY Trades Higher Into Wave 5
Pair has made new highs above 160.00 as expected and leaves no doubt that rally from 154.67 is wave ( 5 ) of an Ending Diagonal structure from 6.13.2013 low. Momentum (RSI) divergence is visible making this a text book structure which should conclude in the next few weeks between 161.30 (inverse 1.236 FE) - 163.34 (inverse 1.618 FE) and would leave the pair vulnerable to a sharp downside reaction.
If you liked the analysis, please visit our website and sign up for 14 day Trial to receive accurate & timely forecasts of 25 instruments in 4 time frames. You would also get access to our 24 hour chat room for trades, daily technical videos, weekly seminar and trend report which is a key ingredient of our system to keep traders on right side of the market.
Eric Morera, Elliottwave-Forecast.Com
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.