FX.co ★ Daily analysis of GBP/JPY for December 19, 2014

Overview

Proceeding from the today's 4H chart, the pair is still trading between the support level of 185.80 and the resistance level of 186.70, and currently the pair fails again to break the resistance level. If the pair breaks it to take an upward movement, it might continue its bullish trend, and we will get a good opportunity to buy above the resistance level of 186.70 again untill the closure of 4H above the resistance level of 187.70 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 188.50. On the other hand, if the pair failed to break the resistance level of 186.70 and bounces from it, it may take a downward trend, which will enable the support level of 185.80 again. Therefore we suggest waiting for the next closing before making the decision.

Resistance and support levels: R3 (188.50), R2 (187.70), R1 (186.70), S1 (185.80), S2 (185.00), S3 (184.40)