FX.co ★ Daily analysis of GBP/JPY for August 27, 2014

Overview

In H4 chart, the pair failed more than once to break the support level of 172.00 and it has been trading above it since yesterday. The pair is expected to bounce from the support area again and start to take a slightly upward move, approaching the resistance level of 172.60. Currently, it is preferred to wait till closing above this resistance level before making a decision. In this case, we will get more bullish signals with the first target few pips below the next resistance level of 173.30, then at 174.00 as the second target. But closing below the resistance level of 172.60 cancels the bullish move scenario.

Resistance and Support levels: R3 (173.75), R2(173.30), R1(172.60), S1 (172.00), S2(171.50), S3(171.00)