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GBPUSD has formed a cycle top at 1.6516 on 4-hour chart. The fall from 1.6516 is now treated as consolidation of downtrend from 1.6745. Another fall would likely be seen later today, and target would be at 1.6150 area. Key resistance is at 1.6516, only break above this level could trigger another rise towards 1.7000.



Daily Forex Forecast

USDJPY broke above the downtrend line on 4-hour chart, suggesting that the short term downtrend from 82.76 has completed at 79.58 already. Now the bounce from 79.58 is treated as consolidation of longer term downtrend from 85.51. Range trading between 79.58 and 81.50 would likely be seen in a couple of days. As long as 81.50 resistance holds, downtrend could be expected to resume after consolidation, and another fall towards 78.50 area is still possible.



Daily Forex Analysis

USDJPY stays below a downtrend line and remains in downtrend from 85.51. As long as the trend line resistance holds, downtrend could be expected to continue, and next target would be at 78.00-79.00 area. However, a clear break above the trend line resistance will indicate that a cycle bottom is being formed at 79.58 on daily chart, then the following upward move could bring price to 82.50-83.00 area.

For long term analysis, USDJPY is in consolidation of long term downtrend from 124.16 (2007 high). Range trading between 76.40 and 90.00 is expected in next several months.



Weekly Forex Forecast

USDJPY remains in downtrend from 82.76, the bounce from 79.58 is treated as consolidation of downtrend. Resistance is at the downtrend line on 4-hour chart, as long as the trend line resistance holds, downtrend could be expected to continue, and next target would be at 79.00 area. On the other side, a clear break above the trend line resistance will indicate that a cycle bottom has been formed at 79.58 on 4-hour chart, and the downtrend from 82.76 has completed, then further rally could be seen to 81.50 zone.



Written by ForexCycle.com