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18.01.2016 05:40 PM
Daily analysis of GBP/JPY for January 18, 2016

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Overview

Decline in GBP/JPY continued last week and accelerated to as low as 166.23. Initial bias remains on the downside this week for the long-term Fibonacci level at 165.67 first. A break will target 161.8% projection of 195.86 to 180.36 from 188.79 at 163.71. On the upside, breaks above the minor resistance at 170.57 will turn bias neutral and bring consolidation first. In the longer-term picture, the uptrend from the long-term bottom of 116.83 should have already made a medium-term top at 195.86. We expect price actions from 195.86 to develop into a corrective pattern. Such an uptrend should resume at a later stage after the correction completes.

Daily Pivots: (S1) 165.12; (P) 167.84; (R1) 169.44

Summary
Urgency
Analytic
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