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Daily Market Report – GBP/JPY False Breakdown? August 15, 2017

By Mexgroup.com

GBP/JPY Truned To The Upside

Price rallies aggressively as the Yen is demolished by the Nikkei’s impressive jump. GBP/JPY is trading in the green and looks motivated to climb much above the 143.00 psychological level. Today’s rally invalidated a crucial breakdown, we still need a confirmation that will increase further in the upcoming period.

The Yen drops versus all its rivals as the JP225 started an aggressive bullish momentum, has opened with a gap up today as well, signaling that the bulls are in full control. The index is trading above the 19700 major static resistance and could climb towards the 20058 long term upside obstacle.

I want to remind you that the Nikkei is still under massive pressure despite the current rebound, could drop anytime again as long as stays under the 20058 horizontal resistance.

You should be careful later as the UK is to release high impact data, the CPI is expected to increase by 2.7% in the last month, more versus the 2.6% growth in the former reading period, while the Core CPI could increase by 2.5%, beating the 2.4% in June. The RPI, HPI, PPI Input and the PPI Output will be released as well.

15gbpjpy

Looks like we had a false breakdown below the red uptrend line, a retest of this obstacle will signal a further increase in the upcoming period. The rebound is natural after the failure to reach the lower median line (lml) of the minor descending pitchfork.

A bounce back at least till the median line (ml) was expected, right now should climb to retest the upper median line (uml).

EUR/JPY Head And Shoulders?

15eurjpy

Price turned to the upside after the false breakdown below the confluence area formed by the 38.2% retracement level with the sliding line (SL) and with the median line (ml) of the minor descending pitchfork. Now is pressuring the upper median line (UML) of the major ascending pitchfork, has retested the red uptrend line as well.

Could still increase to retest the confluence formed by the uptrend line with the upper median line (uml), or the one formed between the median line (ml) of the black ascending pitchfork with the upper median line (ml) of the minor descending pitchfork.

A rejection from the mentioned confluence areas will signal a Head and Shoulders pattern, it will be confirmed only after a valid breakdown below the 38.2% retracement level.

Gold Focused On Correction

15gold

Gold is very heavy on the Daily chart and looks unstoppable. It should hit the warning line (WL1) in the upcoming days. The yellow metal could start another leg lower if the United States data will impress in the afternoon.  The current drop is natural after the failure to reach and retest the 23.6% retracement level and the $1295 per barrel.

By Olimpiu Tuns

Market Analyst

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About Louie Lewis

Louie Lewis
Successful forex trading starts with you first. Then comes the actual strategies and techniques. I have been involved with forex and forex trading for a few years now. It is a wonderful way to build wealth. The learning never stops and I want to help others along their journey into this wonderful market of opportunity.

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