FX.co ★ Daily analysis of GBP/JPY for October 21, 2014

Overview 

According to today's H4 chart, yesterday's closing below the resistance level of 173.00 gave the price an opportunity to make a bearish move after it has failed to break it through. As shown here, currently the price is trying to continue its bearish move and is approaching support level of 172.00 trying to break it through. In that case, we might get another opportunity for more sell signals which will open the way towards 171.50 as the first target. Then the price should test the support level of 171.50 to continue its bearish move. But as long as the price stabilizes above the support level of 172.00, it cancels the first scenario. 

Resistance and support levels: R3 (174.40), R2 (173.75), R1 (173.00), S1 (172.00), S2 (171.50), S3 (170.70).