GBP/JPY broke below the upward trend line suggesting a
continuation of a downtrend. After the breakout, price corrected sharply and
formed support around the 156.60 area, which was broken last week.
Fibonacci applied to the first corrective wave after the
breakout suggest 3 potential downside targets, S2, S3, and S4. The RSI oscillator
formed a bearish divergence adding extra confirmation to the potential
downtrend continuation.
Consider selling GBP/JPY while the rate is near R1 (156.60),
targeting either S2, S3, or S4 (153.30) as a final target. The stop loss should
be just below the R2 (157.40)
Support: 155.70, 155.10, 154.20, 153.30
Resistance: 156.60, 157.40
The material has been provided by InstaForex Company – www.instaforex.com
The post Technical analysis of GBP/JPY for May 16, 2016 appeared first on forex-analytics.press.