GBP/JPY at Risk of Head-and-Shoulders Formation
A head-and-shoulders may take shape in GBP/JPY if it struggles to retrace the decline from the September high (185.78).
GBP/JPY Outlook
GBP/JPY may no longer reflect the bullish trend from earlier this year amid the flattening slope in the 50-Day SMA (183.40), and failure to trade back above the moving average may curb the recent rebound in the exchange rate like the price action from last week.
A breach below the 179.40 (23.6% Fibonacci retracement) to 179.70 (61.8% Fibonacci extension) region raises the scope for a test the monthly low (178.10), with the next area of interest coming in around 177.20 (23.6% Fibonacci retracement).
Nevertheless, GBP/JPY may stage another attempt to trade back above the moving average as it retraces the decline from the monthly high (183.82), with a break/close above 183.90 (50% Fibonacci retracement) bringing the September high (185.78) on the radar as it negates the threat of a head-and-shoulders formation.
GBP/JPY Outlook
GBP/JPY may no longer reflect the bullish trend from earlier this year amid the flattening slope in the 50-Day SMA (183.40), and failure to trade back above the moving average may curb the recent rebound in the exchange rate like the price action from last week.
A breach below the 179.40 (23.6% Fibonacci retracement) to 179.70 (61.8% Fibonacci extension) region raises the scope for a test the monthly low (178.10), with the next area of interest coming in around 177.20 (23.6% Fibonacci retracement).
Nevertheless, GBP/JPY may stage another attempt to trade back above the moving average as it retraces the decline from the monthly high (183.82), with a break/close above 183.90 (50% Fibonacci retracement) bringing the September high (185.78) on the radar as it negates the threat of a head-and-shoulders formation.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.