GBPJPY Might Target Resistance Around 145.00
03 September 2020
GBPJPY might be looking to hit 145.00 resistance in the near term. The currency has hit fibonacci 0.785 retracement of the entire drop between 148.00 and 124.00 around 143.00 recently. A push beyond 143.00 would encourage bulls to take out 145.00 resistance.
GBPJPY potential wave counts are as follows: The currency had dropped from 148.00 through 124.00 in 3 waves, hence corrective. The above drop could either be last wave within a potential ending diagonal at a larger degree, or just a correction.
If the former count holds well, GBPJPY would remain in control of bulls and continue past 145.00 and 148.00 levels in the next few weeks. Alternately, if the previous drop was just a correction, GBPJPY might reverse lower from here, and push towards 124.00.
We have marked the wave accordingly on the chart here. If the recent rally from 124.00 through 143.00 was just a pullback or corrective wave, prices should reverse sharply from here and break below 132.00 support.
Alternately, if an impulse is underway from 124.00, GBPJPY might only drop in a corrective manner and hold above 132.00 mark. Eventually, the pair might be bought on dips as bulls would be poised to target 145.00 and 148.00 respectively.
Immediate support is seen at 138.00/20 and a break lower would confirm that short term trend has turned lower. Traders might watch out for support around 136 to initiate long positions again.
Prepared by
Technical Analysis Team
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