KVE
Short

GBP/JPY: Possible bullish pattern with limited potential?

FX_IDC:GBPJPY   POUND STERLING / YEN
75 0 4
Not sure about the validity of the pattern because of the C point being so high..

We might see some stalling at the current level because of this small trendline (+ divergence on RSI and MACD ) but I do suspect this will be limited.

If we get below the current trendline , completion of the bat should come soon (divergence on the daily building).

I am however worried that this bat will not yield what it normally would (up to 61.8%) because of the fact that JPY will continue to be one of the safe-haven currencies and the recent moves have been so violent (and I supect we will see more of that in the coming weeks/months, world is beginning to see overvaluation everywhere...).

So maybe some retracement to that trendline or possibly above to the 38.2 retracement of the CD-leg             but i don't see it going too much further up (or I wouldn't bet on it would be better wording!). We might see that lower lying trendline come closer soon after that I would guess... On the other hand: a struggling market can make all sorts of crazy moves...

For now preferring to catch the downward moves...
If we see decent recovery next week then I will adjust my views and might aim higher on the bat scenario!

As always, we'll see how it develops! Good luck!
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