GBP/JPY tries to correct the main downward trend - Technical Analysis - 19-01-2016
GBP/JPY advanced in the intraday levels trading, sneaking along the upward trend line in the short term and trespassing the SMA50, getting rid of its negative pressure and benefiting from its positive pressure. The pair's chart then hinted at forming negative harmonic pattern moving through its fourth and last wave, the Gartley pattern as shown in the attached chart, with an influx of negative signals from relative power indicators.
Therefore we expect more profits to come for the pair, targeting the resistance of 169.00, at which the forming harmonic pattern finishes off, but caution should remain about the pair's behavior upon reaching that level, as it could bounce lower again.
Trend
Bullish