FX.co ★ Daily analysis of GBP/JPY for July 30, 2014

Overview

From the today's H4 chart and as it was expected yesterday, the pair might take a new bullish signal in case of closing 4H above the resistance level of 173.30 after it was tested yesterday. Today, the pair took an upward movement and managed to break the strong resistance area of 173.30 then 173.75, but immediately it has bounced again from the resistance level of 173.75 to reverse its upward direction and currently the price is trading around this resistance area. More bullish signals are still expected in case of closing above this resistance area with the first target few pips below the resistance level of 174.00, hence we should wait for more confirmations before making the decision.

Resistance and support levels: R3 (175.00), R2 (174.40), R1 (173.75), S1 (173.30), S2 (172.60), S3 (172.20).