11.09.201215:21 Forex Analysis & Reviews: GBP/JPY Technical Levels and Trading Recommendations for September 11, 2012

Overview

Proceeding from the today's H4 chart, the pair takes downward move after it rebound from the Resistance level 125.30 but it has bounced again from the Support level 124.75 to take slightly upward move.Presently the pair is trading between the Support level 124.75 and the Resistance level 125.30. If the pair continues its upward move and manages to break the Resistance level 125.30 and close the H4 above, this will be a strong indicator for a bullish signal and also a good opportunity to buy enabling the Resistance level 125.70, then we should wait until breaking of the Resistance level to continue the bullish movement.
On the other hand, if the pair reverses its movement and takes a downward move and manages to break the Support level 124.75, it may be a good opportunity to sell enabling the Support level 124.50. Breaking this Support level and closing H4 below indicates bearish strength providing new sell signals with the 124.05 level target.
Based on today's H4 chart, technical indicators provide buy signals, but as long as the Resistance level 125.30 is unbroken, the bearish view is still expected and invalidating the bullish view.

Resistance and Support levels

R3(126.30)
R2(125.70)
R1(125.30)

S1(124.75)
S2(124.50)
S3(124.05)

Trading Recommendations

According to previous analysis, we recommend buying after breaking through the Resistance level 125.30 with TP1 125.75 and TP2 126.20; SL closing 4 hours below the Resistance level.