FX.co ★ Daily analysis of GBP/JPY for January 03, 2014

Overview

As it was expected yesterday, we should make the decision after breaking the Support area 171.50 and closing 4H below. As shown on the H4 chart, the pair failed to break this Support area yesterday and bounced from it again to reverse its bearish move taking an upward movement. Currently it is approaching the Resistance level 172.75 to re-test it. Given that the pair continues its bullish move and manages to close 4H above this Resistance level, it gives us new opportunity for Buy-signals above this Resistance level with the first target few pips below the Resistance level 173.85 then 174.75 as a second target. But as long as the pair trades below the Resistance level 152.15, this cancels the bullish move scenario.

Resistance and support levels: R3 (174.75), R2 (173.85), R1 (172.75), S1 (171.50), S2 (170.80), S3 (169.80).