Daily analysis of GBP/JPY for October 29, 2015 Market Analysis Review

Overview

According to the attached H4 chart, a break of 180.36 will extend the whole fall from 195.86 and should then target a test on the 174.86 key support level. The break of the medium-term trend line support is taken as a sign of a 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 the 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 the reversal finally.

Daily Pivots: (S1) 184.12; (P) 184.57; (R1) 185.29

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