Send me real-time posts from this site at my email
Fan Yang

GBP/JPY in the Middle of a Critical Bearish Breakout

GBP/JPY has been bullish since late 2016, but has stalled in 2018. The daily chart below shows the rally from just under 125 to a high just above 156.

GBP/JPY Daily Chart

(click to enlarge)

Bearish Signs:
- Looking at the daily chart, we can see that price made a lower low around 145 in March and a lower high at 154 in April.
- This could be the start of a bearish trend, or at least an ABC correction as projected on the daily chart.
- There is a break below the 200-, 100-, and 50-day simple moving averages (SMAs), another sign that the mode is shifting.
- Finally, 148 is a key support/resistance pivot and it is now broken.

ABC vs. Bearish Mode:
- In the ABC correction scenario, we can anticipate a swing towards 142. I wouldn't be surprised if GBP/JPY fell to 140.
- The bearish outlook would strengthen if price fails to push back above 148-150, which is a key support/resistance pivot area.
- In this more bearish mode, we can anticipate a dip towards 130 and maybe even back to the 2016 low just below 125.

Welcome! Is it your First time here?

What are you looking for? Select your points of interest to improve your first-time experience:

Apply & Continue