FX.co ★ Daily analysis of GBP/JPY for January 17, 2017

Overview

The GBP/JPY pair traded downwards yesterday and closed near the 50% Fibonacci level around 137.50, affected by stochastic rally above 50 levels. The price stability above the current price might force it to show mixed trading and attempt to test 138.80 levels until gaining new negative momentum and renewing the negative attack to our main target at 135.30. In general, the main bearish bias will remain valid depending on the 138.80 barrier. The contradiction between the major indicators is the main factor of the current sideways fluctuations, so the price is likely to gather the required momentum in the near and medium term. The expected trading range for today is between 138.90 and 136.10.