GBP/JPY Candlesticks and Ichimoku Analysis
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Last Candlesticks pattern |
Time of formation |
Trend bias |
| Weekly |
N/A |
N/A |
Sideways |
| Daily |
Morning star |
07 Oct 2009 |
Sideways |
Although the British pound fell in line with our expectation to our indicated downside targets at 135.73 and 133.00, as sterling recovered from 132.05 and closed last week near the week's high, leaving a 'hammer' candlestick pattern on the weekly chart and if a white candlestick is formed this week, this would suggest a temporary low is formed, then correction 137.00/10 and then towards 139.25 (previous support turned resistance) would be seen, however, reckon the Tenkan-Sen (now at 141.02) would hold from here.
On the downside, if sterling fails to overcome this week's high at 137.35 and drops below said support at 132.05 again, this would signal the decline from 163.00 is still in progress, then weakness to 131.00 cannot be ruled out, however, reckon 129.95/00 (100% projection of 163.00 to 139.75 measuring from 153.20) would contain downside and risk from there is seen for another corrective rebound to take place later this month.
On the daily chart, despite last week's anticipated decline to 132.05, as the British pound rebounded from there to as high as 137.35 on Monday, suggesting a minor low is in place and consolidation with mild upside bias would be seen, however, break of said resistance at 137.35 is needed to bring retracement of recent decline to the Kijun-Sen (now at 138.66) and then to resistance at 139.25 (previous support turned resistance), however, reckon price would falter well below 141.38 (50% Fibonacci retracement of 150.70 to 132.05).
On the downside, break of said support at 132.05 would indicate recent decline from 163.00 is still in progress, then weakness to 131.20 (100% projection of 150.70 to 138.30 measuring from 143.60) would follow, however, loss of downward momentum should prevent sharp fall below there and reckon 130.00 would hold form here.
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