FX.co ★ Daily analysis of GBP/JPY for January 02, 2014

Overview

As it was expected, we should wait for breaking theresistance level of 174.75 before making the decision to continue the bullish move. Today and as shown from the H4 chart, the pair failed to break thisresistance level to reverse its bullish trend since the beginning of December taking a bearish move to break the support area at 173.85 -172.75 levels. Currently it is testing the support level of 172.00 trying to break it through to continue its bearish move. If the pair manages to break this support level and closes 4H below, it would be another good opportunity for more sell-signals till reaching the support level of 171.50 as a first target .

Resistance and Support levels: R3 (174.75) R2(173.85) R1(172.75), S1 (172.00) S2 (171.50) S3(170.80)