FX.co ★ Daily analysis of GBP/JPY for August 29, 2014

Overview

As shown in the H4 chart, the pair has failed more than once to break the support level of 172.00 and is still trading above it since yesterday. The pair bounced from the support area again and started to take a slightly upward move approaching the resistance level of 172.60 which is being tested now. Currently, it is prefered to wait till closing above this resistance level before making the 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 173.75 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)