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Chart Of The Day Further potential upside for GBPJPY within medium term corrective rebound phase

Article By: ,  Financial Analyst
April 17, 2018 6:50 AM

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



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