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Technical Analysis – GBP/JPY continuing bullish correction

GBP/JPY 04/01/19 | EconAlerts

GBP/JPY surpasses 23.6% Fibonacci, continuing bullish correction.

GBP/JPY is seeing a pause in the selling pressure after reaching a more than two-year low around 132.48 on Thursday, with the MACD hinting a continuation of the rebound, fluctuating above trigger line in the 4-hour chart. However, the RSI indicator is sloping down in the negative territory, despite the latest upside pullback in the market.

Further bullish actions above the 23.6% Fibonacci retracement level of the down-leg from 149.50 to 132.48, near 136.50, could find immediate resistance at the 20-simple moving average (SMA) around 137.70. Higher, the pair could touch the 138.65 resistance, while a climb above this barrier could hit the 38.2% Fibonacci, which overlaps with the 40-SMA of 139.00 at the time of writing.

Alternatively, should the price break the floor around the 23.6% Fibonacci, support could appear at 132.48. If the latter proves a weak obstacle, then the next stop for investors to have in mind is the 129.00 psychological level, taken from the highs on December 2016.

Overall, GBP/JPY is still in a downward movement but upside risks are rising in the very short-term.


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Disclaimer:
This information is not considered as investment advice or investment recommendation but instead a marketing communication. This material has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.


Source: XM

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