By Yan Petters
Following the better than expected end result of the British Consumer Price Index (CPI), the British pound strengthened against most of its major currency rivals. As a result, the GBP/JPY pair climbed about 70 pips within 20 minutes, and is currently trading near the 132.30 level. In addition, the Fibonacci Retracement lines suggest that the bullish movement is likely to proceed.
• The chart below is the GBP/JPY 4-hour chart by ForexYard.
• A very distinct bullish channel has formed on the chart, and the pair is currently trading in the midst of it.
• The pair has just crossed the Fibonacci retracement 76.4% line, placed at the 132.15 level.
• This indicates that the pair has potential to proceed towards the 100% line, located at the 134.20 level.
• A bullish cross on the Slow Stochastic also suggests that the bullish move has more steam in it.
• In addition, the Bollinger Bands appear to be tightening, suggesting that another sharp movement could be impending.
• Nevertheless, traders should notice that the RSI is currently pointing down, and is about to fall below the 70-line. If the RSI will indeed cross the 70-line, it will signal that the bullish move will be replaced with a bearish correction.
• The next resistance levels are located at: 132.65, 133.05, 133.40 and 134.20
• The next support levels are located at: 131.80, 131.25 and 130.90
Forex Market Analysis provided by ForexYard.
© 2006 by FxYard Ltd
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