27.08.201516:39 Forex Analysis & Reviews: Daily analysis of GBP/JPY for August 27, 2015

Long-term review

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

Overview

GBP/JPY remains neutral for more sideway consolidations. So far, price actions starting from 195.86 are viewed as a consolidation pattern and we still expect strong support from 61.8% retracement of 174.86 to 195.86 at 182.88 to move downside. However, a sustained breakout of 182.88 will bring the bearish scenario to life pushing the pair towards the key support level at 174.86.

On the other hand, the uptrend from 116.83 is still in progress and would target 61.8% retracement of 251.09 to 116.83 at 199.80, which is close to the 200 psychological level. Medium-term momentum is not too convincing with bearish divergence condition for the weekly MACD. We have to be cautious in the medium term topping around 200 awaiting a deep correction. Meanwhile, a break of 174.86 will suggest that the trend has reversed earlier than we expected.

Daily Pivots: (S1) 183.70; (P) 185.89; (R1) 187.63;

Back to the list

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.