GBP/JPY - Watch Out for Clues Next Week
Smooth uptrend started in June 2012 hit a wall last January below 175 and a (very) long term trendline on the monthly chart suggests we may have a temporary top in place.
However, the same monthly chart provides an alternative (and preferred) resistance zone at 180 and just below which has already been quite tested between 1997 and 2003 and now also accounts for a confluence of Fibonacci retracements of the 2007/2008 crash.
Zooming into the current leg up, let us see how price behaves in the lower pitchfork band next week. We may have validated a downward sloping trendline from the current yearly high this week if we close below 172 today so watch out for a potential break out of this resistance on the way to a retest of 175 or alternatively further surrendering towards sub-170 levels.
However, the same monthly chart provides an alternative (and preferred) resistance zone at 180 and just below which has already been quite tested between 1997 and 2003 and now also accounts for a confluence of Fibonacci retracements of the 2007/2008 crash.
Zooming into the current leg up, let us see how price behaves in the lower pitchfork band next week. We may have validated a downward sloping trendline from the current yearly high this week if we close below 172 today so watch out for a potential break out of this resistance on the way to a retest of 175 or alternatively further surrendering towards sub-170 levels.
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