FX.co ★ Daily analysis of GBP/JPY for March 10, 2014

Overview

From today's 4H chart and as it was expected last week, we should wait for breaking the Resistance level of 173.50 before making the decision to keep the bullish trend. Today and as shown in the 4H chart, the pair failed to break this Resistance level and bounced from it to stabilize below the Resistance level of 172.75 and reversed its bullish move taking a slightly bearish move approaching the Support level of 172.00. Currently, it is testing the Support level of 172.00 trying to break it through to continue its bearish move. If the pair manages to break this Support level and closes 4H below, it would be another good opportunity for more sell signals till reaching the Support level of 171.50 as the first target.

Resistance and support levels: R3 (174.00), R2 (173.50), R1 (172.75), S1 (172.00), S2 (171.50), S3(170.50).