FX.co ★ GBP/JPY technical levels and trading recommendations for March 15, 2013

Overview

Proceeding from today's H4 chart, the pair managed to break through the Resistance level 145.00 after its rebound from the lower boundary of the bearish channel yesterday and currently the pair is testing the upper boundary and the Resistance level 145.80 which means a very strong Resistance level. If the pair manages to break this Resistance area and closes 4H out of the bearish channel, we will get a good opportunity to buy again above the Resistance level 145.80 till it reaches the Resistance level of 146.50 as the target level. Then we should wait for breaking this Resistance level to continue the upward move and open the way towards the Resistance level of 146.85. On the other hand, if the pair fails to break this Resistance area and bounces from it, it may reverse the bullish move taking a downward move, which will enable the Support level of 145.00. Then we should wait for breaking this Support level in order to get new bearish signals. In case the pair is able to break the Support level and closes 4H below, we will get a bearish strength providing new sell signals which will enable the Support level of 143.60 as a target level. Based on the given H4 chart, the technical indicators provide buy signals, but as long as the Resistance area is unbroken, the downward move is still expected invalidating the bullish outlook. Therefore, we should wait for more confirmations before making the decision.

Resistance and Support levels R3 (146.85) R2 (146.50) R1 (145.80) S1 (145.00) S2 (143.60) S3 (142.85)