GBP/JPY Candlesticks and Ichimoku Analysis
|
Last Candlesticks pattern |
Time of formation |
Trend bias |
| Weekly |
N/A |
N/A |
Sideways |
| Daily |
Doji |
12 Jun 2009 |
Up |
Although the British pound found renewed buying interest last week at 154.08, once again the Ichimoku cloud bottom (now at 159.75) is still putting pressure on sterling and it is necessary to see the currency pair overcome this resistance to confirm the rise from 118.87low has resumed for retest of 162.60. Once this level is broken, then the aforesaid rise would extend towards 165.06 minor resistance and later towards calculated resistance at 167.38 (50% Fibonacci retracement of the fall from 215.89 to 118.87) which is expected to hold on first attempt.
On the downside, whilst pullback to 158.00 cannot be ruled out, renewed buying interest should emerge well above 155.90/00 and bring further gain to aforesaid upside targets. Only break of 154.08 support would prolong consolidation below 162.60 temporary top and correction to Tenkan-Sen (now at 152.83) cannot be ruled out, however 150.90 (a previous minor resistance) should contain pullback.
On the daily chart, despite falling marginally to 154.08 last week, sterling staged a rebound from there and rose to as high as 160.25 yesterday, suggesting the correction from 162.60 has possibly ended at 154.08 and as the currency pair is still trading well above both Tenkan-Sen and Kijun-Sen, upside bias remains for gain to 160.50, then retest of 162.60. Looking ahead, only above recent high at 162.60 would confirm upmove has resumed towards 164.00, then towards 165.89 (50% projection of 139.03 to 162.60 measuring from 154.08).
On the downside, whilst pullback to the Tenkan-Sen (now at 157.18) cannot be ruled out, sterling should stay above minor support at 155.95 (also below the Kijun-Sen at 156.09) and bring further gain to abovementioned upside targets. Loss of this level would bring further choppy movements below 162.60, then another corrective decline to 154.08 support would follow but downside would be limited to calculated support at 152.83 (50% Fibonacci retracement of 143.06 to 162.60), then the currency pair shall head north again.
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