Trade of the Day: GBP/JPY
By: Dima Chernovolov
GBP/JPY continues to rise in the direction of the key 4-hour Resistance Level 130.50 which was identified previously by Autochartist. Autochartist rates the Significance of this Resistance Level at the 4-bar level – which reflects four earlier price reversals for this price level. GBP/JPY is expected to rise further toward the Resistance Level 130.50 – in line with the earlier upward reversal from the key support area shown below.
As can be seen from the daily GBP/JPY chart below, the pair earlier reversed up from the support area lying between the key support level 126.40 (which stopped the sharp downward impulse in August) and the lower daily Bollinger Band. The proximity of this support area increases the probability GBP/JPY will continue to rise toward the Resistance Level 130.50.