FX.co ★ GBP/JPY technical levels and trading recommendations for March 26, 2013

Overview

Proceeding from today's H4 chart, yesterday the pair took a strong bearish move after it had managed to break the Support level 143.15. But it failed again to break the Support area 142.00 -141.50. Currently the pair is testing the Resistance level 143.15. If the pair manages to break this Resistance level and closes 4H above it, we will get a good opportunity to buy again above the Resistance level till closing 4H above the Resistance level 144.25 as a level target. Then we should wait for breaking this Resistance level to continue the upward move and open the way towards the Resistance level of 145.00. On the other hand, if the pair fails to break this Resistance level and bounces from it, it may reverse the bullish move taking a downward move, which will enable the Support level of 142.50 again. 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 142.00 as a target level. Based on the given H4 chart, the technical indicators provide buy signals, but as long as the Resistance level 143.15 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 (145.00) R2 (144.25) R1 (143.15) S1 (142.50) S2 (142.00) S3 (141.50)