Wednesday March 3, 2010 - 20:50:07 GMT
Share This Story
FXTimes - www.fxtimes.com
FXtimes: Daily Technical Update GBP/JPY Closing in on Projection
Daily Technical Update
March 3, 2010
GBP/JPY Closing in on Projection
- 4H: The Yen has been strong lately, and the GBP/JPY has been one of the weakest yen crosses. (Refer to Daily Video Technical Update 2.26.2010).
- Looking at the 4H time-frame the market looks to be in a very
strong decline to start the week but has been supported above the
132.50 level and consolidating in a very narrow range of about 100 pips.
- Looking at such a sharp decline, there might not be a strong correction but more likely one of 23.6% or 38.2% retracement.
- Daily and Weekly: The daily chart shows the market
closing in on a short-term projection to just above the 131.00 area.
The market is at the 161.8% extended retracement of the rally, which
means, the channel breakout projection has not been reached (only 61.8%
- We can see that the technical picture is very bearish, even if
there is a near-term pause, which we are seeing more clearly in the 4H
- The weekly chart shows that further decline is likely to a more
significant support level at the 200% extended retracement (128-129),
which is the channel breakout projection.
- This is also a 100% swing projection and a 78.6% retracement.
- So look for some near-term support in the 4H time-frame, but when
stochastic is no longer oversold and is turning bearish, get ready for
continuation towards the 129.00 area.
- Stalk the current consolidation in 4H time-frame to look for
confirmation for this outlook (ie. topping and strong bearish action,
break of a rising trendline.)
Commodity Trading Advisor
Information and opinions contained in this report are for
educational purposes only and do not constitute an investment advice.
While the information contained herein was obtained from sources
believed to be reliable, author does not guarantee its accuracy or
completeness. CMS will not accept liability for any loss of profit or
damage which may arise directly, indirectly or consequently from use of
or reliance on the trading set-ups or any accompanying chart analyses.
Foreign currency trading is not conducted on an exchange. CMS is
acting as a counterparty to its clientsâ€™ transactions and as a result,
CMSâ€™ interests may be in conflict with its clients. Since CMS acts as
the buyer or seller in the transaction one should carefully evaluate
any trade recommendation provided by CMS or any of its solicitors.
Foreign currency trading involves a substantial risk of loss and may
not be suitable for all investors.
All screenshots are made from VT Trader 2.0 and are of actual market data at the time of the screenshot.
Forex Trading News
Daily Forex Market News
Forex news reports can be found on the forex research
headlines page below. Here you will find real-time forex market news reports
provided by respected contributors of currency trading information. Daily forex
market news, weekly forex research and monthly forex news features can be found
Real-time forex market news reports and features providing
other currency trading information can be accessed by clicking on any of the
headlines below. At the top of the forex blog page you will find the latest
forex trading information. Scroll down the page if you are looking for less
recent currency trading information. Scroll to the bottom of fx blog headlines
and click on the link for past reports on forex. Currency world news reports
from previous years can be found on the left sidebar under "FX Archives."