FX.co ★ GBP/JPY technical levels and trading recommendations for March 08, 2013

Overview

Today GBP/JPY has bounced from the lower boundary of its bearish channel enabling the resistance level 144.25 to take slightly downwards approaching the support level 143.50. If the pair continues its bearish movement and breaks this support area, this will indicate the bearish strength providing new sell signals enabling to reach 143.15 level. On the other hand, if the pair failes to break the support area 143.60-143.15 and bounce from it, the pair may reverse its bearish movement, so it will be a good opportunity to buy from few pips above 143.60 level with target 144.20. Then we should wait the breakout of the resistance level 144.25 and closing 4H above it to open new bullish signal with 145.00 then 145.75 level targets. The chart depicts the current sell signals, but as long as the support area is unbroken, the upward trend will remain the same invalidating the bearish outlook.

Support and Resistance Levels

R3(145.80) R2(145.00) R1(144.25) S1(143.60) S2(143.15) S3(142.50)

Trading Recommendations: According to previous analysis we recommend selling after breaking the support level 143.60 and closing 4H below it, so we should wait till the breakdown of the support level. Then we can sell with tp 143.10 with stop loss few pips above 143.10 level .