Weekly Outlook: 2015, May 10 - 17

GBP/JPY Technical Analysis: Pound Pauses to Digest Losses

The British Pound is digesting losses against the Japanese Yen after dropping as expected having put in a bearish Evening Star candlestick pattern. A daily close below the 23.6% Fibonacci expansion at 180.96 exposes the 38.2% level at 178.80. Alternatively, a turn above the 14.6% Fib at 182.30 opens the door for a test of trend line support-turned-resistance at 183.35.

Resistance	Support
182.30	180.96
183.35	178.80
184.46	177.05

Prices are wedged too closely between near-term support and resistance levels to justify taking a trade on a long or short side from a risk/reward perspective. With that in mind, we will continue to stand aside until a more attractive opportunity presents itself.



the source

In a research note to clients, Goldman Sachs say data will improve and the USD selloff will reverse:

"After the perfect storm in March -- a dovish Fed and weak payrolls -- price action around last week's GDP disappointment was a howl of disapproval, something akin to the 'The Scream' by Edvard Munch. Foreign-exchange markets appear to be throwing a 'tantrum.'"

the source