What’s up, fellas.

The Japanese cross GBP/JPY has been stuck in a narrow trading range of 147.150 – 147.750 as investors didn’t get any major reason to break out of the range. For the moment, the pair is trading at 147.550, right below the immediate resistance level of 147.650. Let’s look at the key technical points:

Key Technical Points

• On the hourly chart, the pair has formed a double top pattern which is pushing the GBP/JPY lower.
• The RSI is coming out of the oversold zone (crossing below 80), signaling a potential bearish reversal.
• The 20 & 50 periods EMA has a bearish crossover, which is another signal for a bearish bias.
• The GBP/JPY failed to violate 147.650, a crucial trading level of the day.

Support Resistance
147.12 148.16
146.57 148.65
145.53 149.7
Key Trading Level: 147.61

GBP/JPY – Trade Plan

The idea is to stay bearish below 147.650 to target 147.150. Whereas, the bearish breakout of 147.150 can open further room for selling until 146.750. Good luck!