- Daily and 4H: We saw the GBP/JPY end last week with a bullish attempt, within a declining channel. This is a counter-trend rally, and a trading approach is to stalk the rally until it has completed the correction. (Refer to Weekly Technical Update 3.5.2010; last pair)
- The rally reversed at 137.50 area and is now testing 134.0, previous resistance now tested as support.
- I have a feeling there could be another rally attempt if 134.0 indeed holds.
- Then at the 136.13 are the truth would be told. A break above suggests a swing projection towards 138 and possibly the 138.80 area.
- If it holds, the market will be in a congestion pattern (triangle).
Fan Yang
Currency Analyst
Commodity Trading Advisor
Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. CMS will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analyses.
Foreign currency trading is not conducted on an exchange. CMS is acting as a counterparty to its clients’ transactions and as a result, CMS’ interests may be in conflict with its clients. Since CMS acts as the buyer or seller in the transaction one should carefully evaluate any trade recommendation provided by CMS or any of its solicitors. Foreign currency trading involves a substantial risk of loss and may not be suitable for all investors.
All screenshots are made from VT Trader 2.0 and are of actual market data at the time of the screenshot.
Please login to comment. Dont have an account? Register