FX.co ★ Daily analysis of GBP/JPY for September 23, 2015

Overview

According to the attached H4 chart, the break of the 184.22 support suggests that a rebound from 180.36 has been already completed at 188.28. Intraday bias is turned back to the downside for the 180.36 support. Break will extend the whole fall from 195.86 to the 174.86 support. In case of recovery, risk will stay on the downside as long as 188.28 holds. The break of the medium-term trendline support is taken as a sign of trend reversal. This is supported by bearish divergence condition in the weekly MACD. Besides, GBP/JPY was close to key cluster resistance of 61.8% retracement of 251.09 to 116.83 at 199.80, which is close to the 200 psychological level. A break of 174.86 will confirm trend reversal and bring a deeper fall to 38.2% retracement of 116.83 to 195.86 at 165.67. In case of another rise, we will be cautious about strong resistance from 199.80/200.00 to bring a reversal finally.

Daily Pivots: (S1) 183.46; (P) 185.23; (R1) 186.38