Daily analysis of GBP/JPY for January 17, 2014

Overview

In H4 chart, the pair failed more than once to break the support level of 170.50 and it has been trading above that level since yesterday. In today’s H4 chart the pair bounced from the support area again and started to take a slightly upward move approaching the resistance level of 171.50 which is tested now. Currently, it is prefered to wait till closing above this resistance level before making a decision and in this case we will get more bullish signals with the first target few pips below the next resistance level of 172.20, then 173.00 as the second target. But closing below the resistance level of 171.50 cancels the bullish move scenario.

Resistance and support levels: R3 (173.00), R2 (172.20), R1 (171.50), S1 (170.50), S2 (169.80), S3 (169.00).

The material has been provided by InstaForex Company – www.instaforex.com

Read more here: Daily analysis of GBP/JPY for January 17, 2014