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Daily analysis of GBP/JPY for January 22, 2016

GBPJPYH4.png

Overview

The short-term bottom is likely to be in place at 163.96, just ahead of the 161.8% projection of 195.86 to 180.36 from 188.79 at 163.71, on bullish convergence condition in the 4-hour MACD. Intraday bias has turned neutral first. Intraday bias is turned neutral first. Breaks above the minor resistance of 169.09 will bring a stronger rebound. Meanwhile, a break of 163.96 will target the 200% projection at 157.79. A fall from 195.86 is currently viewed as a correction. The 38.2% retracement of 116.83 to 195.86 at 165.67 has already been met. Based on the current momentum, the correction would likely extend to 61.8% retracement at 147.01 before completion.

Daily Pivots: (S1) 165.28; (P) 166.49; (R1) 168.54

The material has been provided by InstaForex Company - www.instaforex.com