Oversold GBP/JPY Looking for Retracement – Get Ready to Capture It!

The Japanese yen took a bullish turn after better than expected Producers Price Index (PPI) figures. The figures beat the forecast of 2.8% vs 2.9%, earning bulls for the Japanese Yen.

Technically speaking, the GBP/JPY has violated a strong support level of 147. That’s the same level which supported the GBP/JPY on October 18. Anyhow, the pair has entered the oversold zone (RSI below 20), giving us an opportunity to encash the correction and we did by taking a buying trade above 146.400 to target 146.750.

Support Resistance
147.21 148.41
146.75 149.16
145.55 150.36
Key Trading Level: 147.95

What’s My Plan?
I’m thinking of entering a sell position below 146.950 to target quick 40 pips. Whereas on the lower side, I will be looking for a buying signal above 143.250 with 20 pips stop loss.

Good luck!