23 Feb 2015
GBP/JPY negative bias for 173.44 – JPM
FXStreet (Barcelona) - The J.P.Morgan Team shares the technical outlook for EUR/GBP and GBP/JPY, expecting the latter to fall towards 173.44 as long as the pair remains capped at 186.36/37.
Key Quotes
“The setback risk for GBP is rising in EUR/GBP where the market has almost reached 0.7258 (61.8 % of the 2000- 2008 rally). A weekly close below would be needed to eliminate the bounce risk and to open fresh down-potential to 0.6906 (wave 3 projection) and possibly to 0.6664/57 (wave 3 projections/76.4 %).”
“Above 0.7258 though, bounces could easily stretch out to 0.7596/0.7607 (int. 38.2 %) which would need to be broken for a trend reversal.”
“As for GBP/JPY we remain negative, looking for a minimum decline to 173.44 (minor 38.2 %) as long as 186.36/37 (int. 76.4 %/daily Ichimoku-lagging) is capping the upside.”
Key Quotes
“The setback risk for GBP is rising in EUR/GBP where the market has almost reached 0.7258 (61.8 % of the 2000- 2008 rally). A weekly close below would be needed to eliminate the bounce risk and to open fresh down-potential to 0.6906 (wave 3 projection) and possibly to 0.6664/57 (wave 3 projections/76.4 %).”
“Above 0.7258 though, bounces could easily stretch out to 0.7596/0.7607 (int. 38.2 %) which would need to be broken for a trend reversal.”
“As for GBP/JPY we remain negative, looking for a minimum decline to 173.44 (minor 38.2 %) as long as 186.36/37 (int. 76.4 %/daily Ichimoku-lagging) is capping the upside.”