After a typical Monday price action that was triggered by the Yen weakness the GBP/JPY continued to rise but it failed to reach W H5. A sudden drop in price and a close below EMA89 and W H4, with an interim consolidation suggests that this could be an inverted dead cat bounce pattern. POC rejections could happen within 149.25-55 zone. If the price closes below the trend line we could see a move towards 148.68 and 148.25 so the pattern will be validated. Target is 148.25. However, if the price spikes above 149.97 we might see 150.67 and the pattern will become invalid.
W H3 – Weekly Camarilla Pivot (Weekly Interim Resistance)
W H4 – Weekly Camarilla Pivot (Strong Weekly Resistance)
D H4 – Daily Camarilla Pivot (Very Strong Daily Resistance)
D L3 – Daily Camarilla Pivot (Daily Support)
D L4 – Daily H4 Camarilla (Very Strong Daily Support)
POC – Point Of Confluence (The zone where we expect price to react aka entry zone)
Best wishes,
Nenad
Follow Admiral Markets on Facebook – @AdmiralMarkets on Twitter – for the latest market updates.