GBP/JPY technical levels and trading recommendations for January 25, 2013
Proceeding from the today’s H4 chart, the pair takes an upward move after breaking the Resistance level 142.60 and currently is testing the Resistance level 143.80. Given that the pair continues its upward trend and manages to break the Resistance level 143.80 and closes 4H above, we will get a good opportunity to buy again above the Resistance level till it reaches the Resistance level of 144.65 as the target level. Then we should wait for breaking this Resistance level to continue the upward move and open the way towards the Resistance level of 145.00. On the other hand, if the pair fails to break the Resistance level of 143.80 and bounces from it, it may reverse the bullish move taking a downward move, which will enable the Support level of 143.00. 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 142.60 as a target level. Based on the given H4 chart, the technical indicators provide buy signals, but as long as the Resistance level of 143.80 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 (145.00) R2 (144.65) R1 (143.80) S1 (143.00) S2 (142.60) S3 (141.80)
According to the previous analysis, we recommend buying after breaking the Resistance level of 143.80 and closing 4H above with TP 144.50; SL closing 4 hours below the Resistance level will be appropriate.
The material has been provided by Instaforex Company – http://www.instaforex.com/