GBP/JPY to Complete Gartley
- Weekly: The GBP/JPY has been one of the weaker yen-crosses in the short-term, relative to weekly and intermediate relative to daily charts.
- Looking at the weekly, we can confirm that the bearish mode has been established since summer of 2007 (to the left of the chart).
- The market is rolling up from oversold conditions, but its still generally bearish. It looks like some bullish attempt is underway though, after possibly completing a 2-leg correction near 78.6% retracement.
- Daily: The daily time-frame shows a bounce from 132.00 for the last couple of weeks, and since the beginning of March.
- It appears to be a 2-leg rally which looks to project to the 139.50 area (61.8% retracement). This would be a completed bearish gartley near an area of significant resistance 140.00.
- If there is topping action after this retracement pattern and bearish attempt gets underway, it may reach the 78.6% area we see in the weekly, which is near the 130.40 area.
- But if it breaks above 140.00, that’s an intermediate-term bullish signal towards 144.00, which is 100% retracement of the previous swing, and actually 61.8% of the entire decline from 150.80 to 132.00.
