GBP/JPY, D1

On the daily chart, the RSI and Composite are about to start diverging but have not formed a clear divergence yet. Their MA’s however are forming a bullish signal indicating a strength of the market. The Composite is approaching its resistance and will soon test it. The price is heading towards the middle MA of Bollinger Bands that is almost overlapping with the trend line at about 184.25 creating a fairly strong resistance level.

GBP/JPY: technical analysis

GBP/JPY, H4

On the 4-hour chart, the price crossed over the EMA65 and is growing towards its EMA130 along the upper band of the Bollinger Bands. The RSI and Composite however formed a divergence and warn of a possible downward correction. Their MA’s remain bullish but the composite failed its resistance level for the second time this week.

GBP/JPY: technical analysis

Key levels

Support levels: 182.98 (high volume trade), 182.47 (38.2% retracement), 180.63 (psychologically important level), 179.47 (23.6% retracement).

Resistance levels: 183.98 (EMA130 on the 4-hour chart), 184.90 (50% retracement), 186.46 (psychologically important level).

Trading tips

Open long positions from current prices with target at 184.80 and stop-loss at 183.80.

Short positions can be opened from the level of 180.53 with the target at 179.57.




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