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Daily analysis of GBP/JPY for January 26, 2016

GBPJPYH4.png

Overview

The recovery from the 163.96 short-term bottom is still in progress and further rise could be seen. We expect the upside to be limited by the 38.2% retracement of 188.79 to 163.96 at 173.44 and bring fall resumption. A break of 163.96 will extend the fall from 195.86. Current development confirmed medium-term topping at 195.86 on bearish divergence condition in the weekly MACD. A fall from 195.86 is currently viewed as a correction and 38.2% retracement of 116.83 to 195.86 at 165.67 has already been met. Based on the current momentum, the correction is likely to extend to the 61.8% retracement at 147.01 before completion.

Daily Pivots: (S1) 167.50; (P) 168.92; (R1) 170.78

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