GBPJPY Technical Analysis 4 Jan

Reasons for buying
Strong USDollar and a hawkish Fed with three rate hikes planned for 2017 with only two hikes already priced in.

Reasons for selling
Profit taking in January for tax purposes

GBPJPY Daily

Pound Yen dropped 185 pips yesterday at the open of New York though found support at the daily 21.

GBPJPY H4

Coming off WPP Bulls are targeting WR2 for the week. Resistance eyed at MPP/ WR1/ 145 and then further up at WR2/ MM3/ 146.50.

GBPJPY H1

The 61.8% fib of yesterday's drop coincides with DM3. The MPP/ WR1/ 145 confluence of resistance is higher up at the 78.6% fib. Note that price opened in Asia in the bull buying zone of DM2 - DPP, which gives bulls a target of DM4/ DR2. DM4 coincides with WM4 and DR2 coincides with WR2.

6 thoughts on “GBPJPY Technical Analysis 4 Jan”

  1. Maryna says:

    Hey Ryan! I commented on Dalma’s GBJPY tradeplan on Monday and that I was waiting for a re-test of 144.70 before considering buying and it has come down nicely to test that price and at this level now, so I will wait to see if it will break 144.70 as the H4 trendline broke bullish in the Tokyo session.

    1. Thanks for the feedback… Came down nicely off MPP and found further resistance at 144.50 after the pull back on M15. Looks like we have a head and shoulder pattern on H1 though that still needs to be confirmed by a break below 143.500… What do you think?

  2. Thanks mate for this update. I took a look at today’s fundamentals from the UK and its funny how construction PMI is likely to contract while mortage approvals for November is expected to rise by 1K. shouldn’t it be in sync and say when more mortages are apporoved, more construction is expected in the coming days? Funny and quite contradictory but I’m bullish on the pound.

    1. Thanks for the feedback – why bullish? Brexit is in March

  3. Before March, Technicals are pointing to a move up, at least that is what the monthly chart points to. I was thinking again, the politics surrounding Brexit and the eventual realization that they messed up-http://www.independent.co.uk/news/uk/politics/brexit-latest-news-lord-wallace-salitaire-boris-johnson-foreign-office-despiar-civil-servant-a7509181.html and http://news.sky.com/story/theresa-may-warned-not-to-force-brexit-oath-on-uks-new-eu-envoy-10717713.
    Britons and May herself wants a soft landing and if they do,Pound will find some reprieve.

    1. Fair enough!! Thanks for the share!!!

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