FX.co ★ Daily analysis of GBP/JPY for March 17, 2014

From the 4H chart, last week the pair failed to break the support level of 167.85 to reverse downward trend and take an upward move. From today's 4H chart, the pair bounced from the support level and started to take an upward movement approaching the resistance level of 169.75 which is tested right now. Currently it is prefered to wait till closing above this resistance level before making the decision and in this case we will get more bullish signals with the first target few pips below the next resistance level of 170.50 then 171.50 as the second target. But closing below the resistance level of 169.75 cancels the bullish move scenario.