A sharp reversal in the Dow from just a few points under 20000 to 19840 for the biggest fall in the Dow since October. The risk off trade mainly attributed to profit taking did have an impact in FX markets with the safe haven Yen getting demand.
USD/JPY reversed below Y117 support and opens up the door to test Y116 a bigger support. EUR/USD reversed off lows with the USD selling but GBP and AUD remained weak.
With only 2 days left in 2016 profit taking may become the dominant theme which may exaggerated the USD selling and stock market pull back expected at some point from just a technical viewpoint.
| GBP/JPY |
12/29/2016 12:00 AM |
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Trend daily chart  (=) |
Trend weekly chart  (=) |
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GBP/JPY Intraday: the downside prevails. |
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Pivot: 143.50
Our preference: short positions below 143.50 with targets at 142.75 & 142.40 in extension.
Alternative scenario: above 143.50 look for further upside with 143.83 & 144.25 as targets.
Comment: the RSI lacks upward momentum.
Supports and resistances:
144.25 **
143.83 ***
143.50 ***
143.03 Last
142.75 ***
142.40 ***
142.00 *** |
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