GBP/JPY: Intraday Bias Remains On Downside For 169.34 Key Support Level
ActionForex | Oct 15, 2014 02:17AM ET
Daily Pivots: (S1) 169.28; (P) 170.88; (R1) 171.84;
GBP/JPY drops to as low as 169.92 so far today and intraday bias remains on the downside for 169.34 key support level. Decisive break there will indicate medium term reversal and will pave the way to 163.87 support next. On the upside, above 172.47 minor resistance will turn bias neutral first. In that case, we'll access the strength of the rebound.
In the bigger picture, the sharp decline from 180.70 is raising the chance that it's a medium term, on bearish divergence condition in daily MACD. Focus is now on 169.34 support. Decisive break there will confirm that up trend from 116.83 low has made a top. In the case, deeper correction would be seen to 38.2% retracement of 116.83 to 180.70 at 156.30. Meanwhile, strong rebound from 169.34 would extend the up trend to 50% retracement retracement of 251.09 to 116.83 at 183.96.
Daily Pivots: (S1) 134.84; (P) 135.69; (R1) 136.35;
The breach of 135.50 support argues that the medium term is possibly reversing. Intraday bias remains on the downside. Sustained trading below 135.50 will confirm this case and target 131.21 support next. On the upside, above 136.54 resistance will indicate strong support from 135.50 and will turn bias neutral first. We'll gauge the strength of the rebound then.
In the bigger picture, sustained break of 135.50 key support level will indicate that up trend from 94.11 long term bottom has made a medium term top. In the case, deeper correction should be seen to 38.2% retracement of 94.11 to 145.68 at 125.98. On the upside, above 141.21 resistance will extend the up trend to 76.4% retracement of 169.96 to 94.11 at 152.59 instead.
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