Choppy Session In GBP/JPY – Good Time for Short?
Arslan Butt • 1 min read
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
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.