Thread: Fxtimes: Forex Technical Update GBP/JPY: Adjusting Target

Forex Technical Update
May 26, 2010

GBP/JPY: Adjusting Target


•15-min: Following up with yesterday’s GBP/JPY projection, the target needs to be adjusted because a minor cycle low came down to to 129.05 instead of 129.40. The target should be adjusted from 131.20 to near 130.85.
•The European session was indecisive, and the power of the projection is lost through time, so the validity of this outlook is in question. If the RSI here does not break above and forms a double top, we may want to scrap this projection, because GBP/JPY is in a bearish mode in the higher time-frames.
•On the other hand, the market did form an ab=cd retracement in this 15-min chart, and a rally is expected. If momentum picks up in NY session, we may be able to abandon our adjustment, and look for price action for quick reversal signals.
Fan Yang
Currency Analyst
Commodity Trading Advisor

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In the 1600s, the Japanese developed a method of technical analysis to analyze the price of rice contracts. This technique is called candlestick charting. Steven Nison is credited with popularizing candlestick charting and has become recognized as the leading expert on their interpretation.