The Japanese cross finally took a u-turn as investors await the nonfarm payroll figures coming Friday. A day before, better than expected economic events managed to underpin the investor’s confidence in risky investments. Consequently, the GBP/JPY has entered the overbought zone.

GBP/JPY – Bearish Trendline

On the hourly chart, the bearish trendline is extending a solid resistance to the GBP/JPY near 147.450. On the lower side, the upward trend line is likely to support the Japanese cross at 146.85.

GBP/JPY – Hourly Chart

The combination of both these trendlines is making a symmetric triangle pattern that can break to any side. Since the pair is trading right below the bearish trendline resistance of 147.450 and also showing a bearish crossover on the RSI and Stochastics, it is a good opportunity to short the pair. Check FX Leaders Support and Resistance Strategy to trade below profitable levels.

GBP/JPY –  Key Trading Levels

Support     Resistance

146.63        147.73

146.3          148.06

145.75        148.61

Key Trading Level:    147.18

GBP/JPY –  Trading Plan

Due to the technical indicators, we shorted the pair below 147.450 with a stop loss above 147.650 and a profit at 147.150, also a strong level to take a buy position.

Good luck!