Daily analysis of GBP/JPY for December 08, 2015 Market Analysis Review

Overview

A break of the temporary low at 183.96 indicates resumption of a fall from 188.79 and intraday bias is turned back to the downside. Overall, we are still favoring the scenario that the consolidation pattern from 180.36 has been completed at 188.79. A deeper decline would be seen to the 180.36/64 support zone. A break of the 186.33 minor resistance would now dampen our bearish view and turn our focus back to 188.79 instead. It is supported by bearish divergence condition in the weekly MACD. Besides, GBP/JPY was close to the key cluster resistance of the 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 a trend reversal and bring a deeper fall to the 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) 185.34; (P) 185.84; (R1) 186.21

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