Choppy Session In GBP/JPY – Good Time for Short?

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...

Japan in focus

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
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!

ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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