Weekly Technical Analysis Report 26 January – GBPJPY played out nicely, bullish play seen on USDJPY
Weekly Technical Analysis Report 26 January – GBPJPY played out nicely, bullish play seen on USDJPY
1. Last week’s outlook on GBPJPY: Pullback on GBPJPY presents an opportunity to play a further drop
On the daily time frame, prices mitigated a key resistance zone where we could see further downside below this level. On the H4 time frame, we are seeing bearish order flow come into play with prices forming lower lows and lower highs. A pullback to the resistance zone at 157.065, in line with the 78.6% Fibonacci retracement, 127.2% Fibonacci extension presents an opportunity to play the drop, with 153.564 support zone as our target. Ichimoku cloud is showing signs of bearish pressure as well.
GBPJPY Charts (Note: Coloured candles represent our projection)
Before:
After:
2. This week’s outlook on USDJPY: Bullish play seen
On the H4 time frame, prices are holding above the key support zone at 113.60 where we could see further upside above this level. On the H1 time frame, a pullback to our support area at 113.72, in line with the 61.8% Fibonacci retracement and 100% Fibonacci extension presents an opportunity to play the bounce to the next resistance target at 114.20, in line with the 50% Fibonacci retracement.
Outlook on USDJPY: Bullish play seen by Salzworth on TradingView.com
