{"id":50765,"date":"2014-05-12T07:09:01","date_gmt":"2014-05-12T11:09:01","guid":{"rendered":"http:\/\/countingpips.com\/forex-news\/?p=50765"},"modified":"2014-05-12T07:09:01","modified_gmt":"2014-05-12T11:09:01","slug":"gbpjpy-short-term-downtrend-encounters-uptrend-hostility","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex-news\/2014\/05\/12\/gbpjpy-short-term-downtrend-encounters-uptrend-hostility\/","title":{"rendered":"GBP\/JPY: Short-Term Downtrend Encounters Uptrend Hostility"},"content":{"rendered":"<p>Technical Sentiment:\u00a0<strong>Neutral<\/strong><\/p>\n<p><strong>Key Takeaways<\/strong><\/p>\n<ul>\n<li>GBP\/JPY found buyers around 171.21 support;<\/li>\n<li>May downtrend configuration at risk above 172.32 and 172.96;<\/li>\n<li>A break-out outside the consolidation area is expected soon.<\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><em>GBP\/JPY bears put on a show at the end of last week, following BOE\u2019s decision to keep interest rates unchanged at 0.50%. The pair went on to test April 28<sup>th<\/sup> Low at 171.2 before bouncing back up, which of course means the long term uptrend remains valid. On Wednesday cable will have a heavy news day with Unemployment Rate, Claimant Count Change and Inflation Report. Until then traders will rely only on a couple of technical levels within the consolidation area to cap it\u2019s movements in both directions.<\/em><\/p>\n<p><em>\u00a0<\/em><\/p>\n<p><strong>Technical Analysis<\/strong><br \/>\n<img decoding=\"async\" src=\"http:\/\/capitaltrustmarkets.com\/wp-content\/uploads\/2014\/05\/gbpjpyh4.png\" alt=\"GBPJPY 12th may\" \/><\/p>\n<p style=\"text-align: justify;\">GBP\/JPY will remain within the current 200-pip consolidation area for a couple more days. The main support confluence is 171.24, formed around April 28<sup>th<\/sup> Low of 171.24 which coincides with 38.2% Fibonacci Retracement from 167.75 to 173.43.<\/p>\n<p style=\"text-align: justify;\">The pair is currently trading around 172.20, facing an immediate resistance hurdle at 173.30\/40 in the form of a Fibonacci confluence backed up by the 50 and 100 Simple Moving Averages on the 4H time frame. A break above this first resistance will expose 173.00 and the tops formed around 173.44\/54. Such a move will invalidate this month\u2019s Lower Low \u2013 Lower High configuration, favoring the return of the long term uptrend and a continuation above 173.50.<\/p>\n<p style=\"text-align: justify;\">On the other hand, a rejection from the 172.30 resistance line or starting from the 173 area will lead to yet another test of the 171.24 support. If this fails to hold, the sell-off will accelerate towards 170.00 and 169.50, also putting the long term uptrend at risk due to the invalidation of the Higher Lows formations.<\/p>\n<p>*********<br \/>\n<em>Prepared by Alexandru Z., Chief Currency Strategist at <\/em><a href=\"http:\/\/www.capitaltrustmarkets.com\/\"><em>Capital Trust Markets<\/em><\/a><\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Technical Sentiment:\u00a0Neutral Key Takeaways GBP\/JPY found buyers around 171.21 support; May downtrend configuration at risk above 172.32 and 172.96; A break-out outside the consolidation area is expected soon. GBP\/JPY bears put on a show at the end of last week, following BOE\u2019s decision to keep interest rates unchanged at 0.50%. The pair went on to &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/www.investmacro.com\/forex-news\/2014\/05\/12\/gbpjpy-short-term-downtrend-encounters-uptrend-hostility\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;GBP\/JPY: Short-Term Downtrend Encounters Uptrend Hostility&#8221;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-50765","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts\/50765","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/comments?post=50765"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts\/50765\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/media?parent=50765"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/categories?post=50765"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/tags?post=50765"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}