GBPJPY Finds Resistance Just Above 140.00 Levels

20 August 2020

GBPJPY might have finally topped just above 140.00 mark as discussed earlier. The currency had reversed sharply lower yesterday from 140.00 levels and is trading below 139.00 as we prepare the update for today. Looking lower from here.

GBPJPY probable wave counts are as follows: The earlier drop between 148.00 and 124.00 was corrective (3 waves), not seen on the chart here. Also note that subsequent rally since 124.00 lows through 140.20/30 highs also seems corrective A-B-C.

Probabilities remain high for another corrective drop lower towards 128.00 and 126.00 levels, going forward. Also note that above structure might be a part of a diagonal at a larger degree. In that case, we might witness a drop below 124.00 levels.

Alternately, GBPJPY might continue rallying towards 143.00 and higher levels from here. This would confirm a potential bottom in place at 124.00 and that the trend might have turned higher. A break above 148.00 would ascertain that trend has turned higher.

Immediate support is seen towards 138.00, followed by 135.00 and lower, while resistance is seen above 143.00 levels respectively. A break below 135.00 would indicate further downside towards 128.00 and 126.00 respectively.

Traders might be willing to hold short positions from sub 140.00 levels with a protective stop above 142.50 and projected target towards 135.00 and 128.00 respctively.

Prepared by
Technical Analysis Team

Disclaimer: This information has been produced by a third party, for general information purposes only, and is not indicative of future results. Abans Global takes no responsibility for its accuracy or completeness. Any opinions expressed do not reflect those of Abans Global. This information does not take into account your personal circumstances or objectives, and should therefore not be interpreted as financial, investment or other advice, or relied upon as such. You should seek independent advice before making investment decisions. Reproduction of this information, in whole or in part, is not permitted. Please note: If you are a Professional client, you are not eligible for negative balance protection and you could lose more than your initial deposit.

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