GBP/JPY Negates Head-and-Shoulders Formation

GBP/JPY negates the threat of a head-and-shoulders formation as it climbs above the 50-Day SMA (182.90) to clear the September high (185.78).

GBP/JPY

GBP/JPY registers a fresh monthly high (185.97) as it carves a series of higher highs and lows, with a breach above the August high (186.77) bringing the November 2015 high (188.81) on the radar.

However, GBP/JPY may track the flattening slope in the moving average if it fails to close above 186.60 50% Fibonacci extension), with a move below 183.90 (50% Fibonacci retracement) raising the scope for a test of the monthly low (182.74).