FX.co ★ Daily analysis of GBP/JPY for October 07, 2014

Overview 

In 4H chart, the pair failed more than once to break the support level of 174.40 and is still trading above it since yesterday. From the today's 4H chart, the pair bounced from the support area again and started to take a slightly upward move approaching the resistance level of 175.00 which is tested now. Currently, it is preferred 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 176.00 then 176.75 as the second target. But closing below the Resistance level of 175.00 cancels the bullish move scenario. 

Resistance and support levels: R3 (176.75), R2 (176.00), R1 (175.00), S1 (174.40), S2 (173.70), S3 (173.10).