02.04.201316:16 Forex Analysis & Reviews: GBP/JPY technical levels and trading recommendations for April 02, 2013

Long-term review

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Overview

Proceeding from today's H4 chart, the pair took a downward move after its rebound from the Resistance area of the upper boundary of the bearish channel with the Resistance level 143.15. Currently the pair is testing the Support level 141.00. If the pair fails to break the support level and bounces from it, we will get a good opportunity to buy again above the Support level 141.00 till closing 4H above the Resistance level 142.00 as a level target. Then we should wait for breaking this Resistance level to continue the upward move and open the way towards the Resistance level of 142.50. On the other hand, if the pair manages to break the Support level 141.00 and bounces from it, it may continue its downward move, which will enable the Support level of 140.50. Then we should wait for breaking this Support level in order to get new bearish signals. In case the pair is able to break the Support level and closes 4H below, we will get a bearish strength providing new sell signals which will enable the Support level of 140.00 as a target level. Based on the given H4 chart, the technical indicators provide buy signals, but as long as the Resistance level 142.00 is unbroken, the downward move is still expected invalidating the bullish outlook. Therefore, we should wait for more confirmations before making the decision.

Resistance and Support levels R3 (143.15) R2 (142.50) R1 (142.00) S1 (141.00) S2 (140.50) S3 (140.00)

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