FX.co ★ Daily analysis of GBP/JPY for August 31, 2015

Overview

GBP/JPY stays neutral for the moment. Price actions from 195.86 are viewed as a consolidation pattern and should be supported by the mentioned 182.88 Fibonacci level. An upside breakout through 195.86 is expected later. However, sustained trading below 182.88 will dampen our view and turn focus back to the 174.86 support instead. The uptrend from 116.83 could extend to the 61.8% retracement of 251.09 to 116.83 at 199.80, which is close to the 200 psychological level and top there. Meanwhile, considering bearish divergence condition in the weekly MACD. Break of 174.86 support will suggest that the trend has reversed earlier than we expect.

Daily Pivots: (S1) 185.97; (P) 186.58; (R1) 187.80;