Talking Points
GBPJPY Reversal targeting initial support objectives
Updated targets & invalidation levels
Event Risk on Tap ThisWeek
GBP/JPY Daily
Chart Created Using FXCM Marketscope 2.0
Technical Outlook
GBPJPY turns over on the March open around key resistance 184.00/27
Now riding former TL resistance as support- break needed to maintain short bias
Interim support 180.24/32 (bullish invalidation)
Subsequent objectives at 179.12 & key support at 178.11/31
Resistance with the upper median-line (blue) backed by 184.00/27(bearish invalidation)
Daily RSI back sub 50- bearish (note pending resistance trigger)
Event Risk Ahead: UK Construction Output on Friday & the BoJ on Tuesday
GBP/JPY 30min
Notes:We’ve been tracking the sterling crosses all week long with the push into resistance early in the week triggering a reversal across the block. GBPJPY is now coming into an initial area of support defined by the highlighted range between slope lines and the 38.2% retracement at 180.91. A break below this region is needed to maintain our short-bias targeting immediate support at 180.24/32. Subsequent support targets are seen at 179.12/28 with critical support seen at 178.12/32.
Interim resistance & immediate bearish invalidation stands at 181.70 with a breach above targeting 182.60 & the upper median-line parallel (blue). Bottom line: we’ll favor selling rallies / support triggers while below 181.70 with a break sub 180.24 needed to maintain our immediate directional bias. A quarter of the daily ATR yields profit targets of 34-37pips per scalp. Caution warranted heading into the UK data tomorrow and more significant event risk next week with UK employment, the Bank of Japan & the FOMC policy meeting on tap.
* It’s extremely important to give added consideration regarding the timing of intra-day scalps with the opening ranges on a session & hourly basis offering further clarity on intra-day biases.
Relevant Data Releases
Other Setups in Play:
GBPNZD Long Scalps at Risk Sub 2.0850- Reversal Play?
GBPAUD Scalps Target 1.9850 Resistance Ahead of UK & AUS Data
Post NFP Scalps Target USD Breakout – Weekly Opening Ranges in Focus
NFP Setups in Focus- USD Breakout Plays
GBPAUD Reversal at Interim Support- Scalps Target 1.9500
Scalps Target USDCAD Breakout Heading Into BoC, NFPs
—Written by Michael Boutros, Currency Strategist with DailyFX
For updates on this scalp and more setups follow him on Twitter @MBForex
To contact Michael email mboutros@dailyfx.com or Click Here to be added to his email distribution list
Join Michael for Live Scalping Webinars on Mondays on DailyFXat 13:30 GMT (8:30ET)
Interested in learning about Fibonacci? Watch this Video
Source: Daily fx