Overview

According to the attached H4 chart, GBP/JPY remains neutral with focus on 187.36 resistance. Firm break there will argue that fall from 195.86 has completed. More importantly, this will be a signal that a larger uptrend is resuming. Meanwhile, below 183.87, minor support will turn focus back to 180.36 instead. The break of the medium-term trendline support is taken as a sign of trend reversal. This is supported by bearish divergence condition in the weekly MACD. Besides, GBP/JPY was close to key cluster resistance of 61.8% retracement of 251.09 to 116.83 at 199.80, which is close to the 200 psychological level. Break of 174.86 will confirm trend reversal and bring deeper fall to 38.2% retracement of 116.83 to 195.86 at 165.67. In case of another rise, we will be cautious about strong resistance from 199.80/200.00 to bring reversal finally.

Daily Pivots: (S1) 183.93; (P) 185.01; (R1) 185.82;

The material has been provided by InstaForex Company – www.instaforex.com