FX.co ★ Forecast of GBP/JPY for May 21, 2014

GBP/JPY

Forecast-

The pair has been in a downtrend from 173.45 levels. It was rejected thrice at the higher levels around 173.57 (a March 07 high). For the last five trading sessions, the pair has been consolidating between the levels 171.01- 170.01.

Bearish views- Positional

The broken short-term moving average and closing below that, which produce a bearish view in the short-term, are aiming at 1- or 2-month lower levels.

Having broken 3-month lower trendline, it made a double top at 170.95 levels.

It was unable to cross the 50-day SMA. RSI favors "selling the rally" strategy.

Intraday-

In Asia's trading session, the pair is trading at 170.70 levels. The pair is trading in a range between 170.37-170.75. In the wider view, it is consolidating between 171.01-170.01 levels. The hourly oscillators are giving a positive divergence in the H4 chart. There is a possibility to touch 171.21 and 171.42 and 171.80 levels if the pair manages to break and sustaines above the 171.01 levels. On the lower side, if the pair breaks the 170.0 levels, it will extend its fall to 169.80, 169.7 and 169.49 levels.

Recommendations- cmp 170.60.

Buy above 171.02 for targets 171.20 and 171.42.

Sell below 170 for targets 169.80, 169.7 and 169.49.

In case of a day close above 171, it will spike up to 171.25, 171.75 and 172.