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Daily analysis of GBP/JPY for January 27, 2016

GBPJPYH4.png

Overview

The attached H4 chart demonstrates that GBP/JPY remains neutral for the moment. The consolidation from the 163.96 short-term bottom could extend with another rise. But we expect the upside to be limited by the 38.2% retracement of 188.79 to 163.96 at 173.44 and bring a fall resumption. A break of 163.96 will extend the fall from 195.86. A fall from 195.86 is currently viewed as a correction; and the 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 the completion.

Daily Pivots: (S1) 167.89; (P) 168.94; (R1) 169.59

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