#GBPJPY @ 170.397 forms a falling wedge and double bottom chart pattern, piercing the 20-day EMA. (Pivot Orderbook analysis)
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- GBP/JPY forms a falling wedge and double bottom chart pattern, piercing the 20-day EMA.
- The pair must crack the two-week-old resistance trendline to aim for a YTD high of 172.33.
- RSI and 3-day RoC indicators support further upside potential for GBP/JPY.
The pair currently trades last at 170.397.
The previous day high was 169.13 while the previous day low was 168.2. The daily 38.2% Fib levels comes at 168.78, expected to provide support. Similarly, the daily 61.8% fib level is at 168.55, expected to provide support.
After forming a bullish-harami candlestick pattern last Friday, GBP/JPY prints back-to-back positive gains, later confirmed by Monday’s price action. The GBP/JPY reached a low of 168.86 before rallying sharply, towards 170.49. At the time of writing, the GBP/JPY is trading at 170.47.
Since the last days of April, the GBP/JPY began to form a falling wedge that also turned into a double bottom chart pattern in the daily chart. The GBP/JPY bottomed at around 167.84 and pierced the 20-day Exponential Moving Average (EMA) at 168.76 before climbing back toward the 170.00 figure area.
On its way up, the GBP/JPY must crack a two-week old resistance trendline at around 170.30/50. Once done, the GBP/JPY would aim toward the year-to-date (YTD) high of 172.33. But firstly, the GBP/JPY needs to clear some resistance levels. The first supply zone would be the May 10 daily high of 171.17. A breach of the latter will expose 172.13, the last year’s high, before testing 172.33.
Conversely, a drop below 170.00, the GBP/JPY can pull back toward the December 13 daily high-turned-support at 169.27, followed by the 20-day EMA at 168.75. Downside risks lie at the 168.00 figure before testing the 167.50 area.
The Relative Strength Index (RSI) indicator suggests further upside is warranted, and the 3-day Rate of Change (RoC), portrays the GBP/JPY could register another leg-up towards testing the YTD high.
Technical Levels: Supports and Resistances
GBPJPY currently trading at 170.42 at the time of writing. Pair opened at 169.03 and is trading with a change of 0.82 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 170.42 |
| 1 | Today Daily Change | 1.39 |
| 2 | Today Daily Change % | 0.82 |
| 3 | Today daily open | 169.03 |
The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 168.59, 50 SMA 165.28, 100 SMA @ 162.81 and 200 SMA @ 163.7.
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 168.59 |
| 1 | Daily SMA50 | 165.28 |
| 2 | Daily SMA100 | 162.81 |
| 3 | Daily SMA200 | 163.70 |
The previous day high was 169.13 while the previous day low was 168.2. The daily 38.2% Fib levels comes at 168.78, expected to provide support. Similarly, the daily 61.8% fib level is at 168.55, expected to provide support.
Note the levels of interest below:
- Pivot support is noted at 168.44, 167.85, 167.5
- Pivot resistance is noted at 169.38, 169.73, 170.32
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 169.13 |
| Previous Daily Low | 168.20 |
| Previous Weekly High | 171.18 |
| Previous Weekly Low | 167.84 |
| Previous Monthly High | 171.18 |
| Previous Monthly Low | 162.78 |
| Daily Fibonacci 38.2% | 168.78 |
| Daily Fibonacci 61.8% | 168.55 |
| Daily Pivot Point S1 | 168.44 |
| Daily Pivot Point S2 | 167.85 |
| Daily Pivot Point S3 | 167.50 |
| Daily Pivot Point R1 | 169.38 |
| Daily Pivot Point R2 | 169.73 |
| Daily Pivot Point R3 | 170.32 |
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