FX.co ★ Short term forecast of GBP/JPY for June 27, 2014

GBP/JPY

Short-term view-

The pair is enjoying its bull run from 116.80 and is rallying all the way to 174.75 levels. It pauses its rally at 174.75 and has been consolidating near 200-day Ema. The monthly momentum indicators favor selling mode. We recommend next buying only above 174.75 for a target at 178 and 185 levels. On the down side, it has strong support at 168; a break below this, we can see 164 levels.

KEY MONTHLY SUPPORT LEVEL 168

In the weekly chart, the pair is making an ascending triangle. If we get an upside breakout, we can again see a huge upside target aiming at 185 levels. But the weekly RSI is indicating a negative divergence. If the pair gives a downside break out, it can fall further to 169.50, 167.75 and 165 levels.