Chart Of The Day - Further potential upside for GBP/JPY within medium term corrective rebound phase

GBP/JPY short-term corrective uptrend remains intact above 152.65 support.

Short-term technical outlook on GBP/JPY (Tues, 17 Apr)



Key technical elements

  • From its 03 Apr 2018 low of 148.36, the GBP/JPY has continued to evolve within a minor ascending channel with a recent pull-back seen from its 153.85 minor high of 13 Apr 2018 to print a low of 152.65 on 16 Apr 2018. Interestingly, the aforementioned pull-back has managed to stall at the former ascending channel resistance from 02 Mar 2018 (depicted in dotted orange (see 1 hour chart).
  • Momentum analysis from the daily & shorter-term hourly RSI oscillators are still positive where the daily RSI still shows room for further potential upside before it reaches an extreme overbought level of 83%. The hourly RSI continues to hover above its support at the 42% level. These observations suggest that upside momentum of price action remains intact.
  • The key short-term support rests at 152.65 which is defined by the minor ascending channel support from 03 Apr 2018 low and the 23.6% Fibonacci retracement of the on-going up move from 03 Apr 2018 low to 13 Apr 2018 high.
  • The next significant resistance stands at the 154.30/80 zone which is defined by the upper boundary of the minor ascending channel from 03 Apr 2018 and a Fibonacci projection cluster.

Key levels (1 to 3 days)

Intermediate support: 153.25

Pivot (key support): 152.65

Resistances: 154.30 & 154.80

Next supports: 151.30 & 150.50

Conclusion

Therefore as long as the 152.65 key short-term pivotal support holds, the GBP/JPY cross pair may see a further potential up move to target the next intermediate resistances of 154.30 and 154.80 in the first step.

On the other hand, failure to hold at 152.65 opens up scope for a minor corrective setback towards the 151.30 support and even the key medium-term pivotal support of 150.50 (former medium-term swing high area of 27/29 Mar 2018 & 61.8% Fibonacci retracement of the on-going up move from 03 Apr 2018 low to 13 Apr 2018 high)

Charts are from eSignal



Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.