Daily analysis of GBP/JPY for October 16, 2015 Market Analysis Review

Overview

According to the attached H4 chart, the breach of the 184.41 minor resistance suggests that consolidation pattern from 180.36 is in the third leg. Initial bias in GBP/JPY is mildly on the upside for 188.28. Strong resistance would likely to be seen there to limit the upside and bring another decline. On the downside, a break of the 180.36 support will resume the whole fall from 195.86 and will target a test at the 174.86 key support level. 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 200 psychological level. A break of 174.86 will confirm a trend reversal and bring a deeper fall to 38.2% retracement of 116.83 to 195.86 at 165.67. In the longer term, the uptrend from the 116.83 long-term bottom could be topping. There is no confirmation yet, but even is case of another rise, strong resistance would be now likely to be seen near to 61.8% retracement of 251.09 to 116.83 at 199.80.

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