Technical outlook and chart setups:
The GBP/JPY is facing resistance around 175.00 levels and extends up to 175.80/176.00 respectively. The earlier support at 169.30/40 levels has been taken out and the pair is pulling back higher for now, before it resumes its down swing. The level of interest to initiate short position is around 175.50/80, but it is recommended to initiate 50% short positions at the current price (174.30/40) and the remaining higher. Support is seen at 168.00 (interim), followed by 164.00 on the daily chart view, while resistance is seen at 175.80/176.00, followed by 178.00, and 180.00 respectively. Selling intraday rallies should be a preferred trading strategy here.
Initiate 50% short positions now (174.30/40), the remaining at 175.80/176.00, stop above 178.00, target 163.00 and 160.00.
The material has been provided by InstaForex Company – www.instaforex.com