For Traders

Analytical Reviews

Technical analysis

25.09.201213:54 Forex Analysis & Reviews: GBP/JPY Technical Levels and Trading Recommendations for September 25, 2012

Long-term review

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

Overview

The H4 chart demonstrates today that the pair continues its bearish move till reaching the Support level 126.15. Currently, the pair is trying to break the Support level of 126.15 . Given that the pair manages to break this Support level and closes 4H below, we will receive a strong indicator for more bearish signals which will enable the Support level of 125.70 as a level target. Then we should wait for breaking of this Support level to continue the downward move and open the way towards the Support level of 125.30.
On the other hand, if the pair fails to break the Support level of 126.15 and bounces from it, it may reverse the bearish move taking an upward move enabling the Resistance level of 126.85. Then we should wait for breaking this Resistance level to provide new bullish signals. In case the pair is able to break the Resistance level and close 4H above, we will get a bullish strength providing new buy signals enabling the Resistance level of 125.75 as a level target. Based on the given H4 chart, the technical indicators provide sell signals, but as long as the Support level 125.80 is unbroken, the upward move is still expected invalidating the bearish outlook.

Resistance and Support Levels

R3(128.40)
R2(127.75)
R1(126.85)
S1(126.15)
S2(125.70)
S3(125.30)

Trading Recommendations

According to previous analysis, we recommend selling after breaking the Support level 126.15 and closing 4H below with TP 125.75; SL closing 4 hours above the Support level will be appropriate.

Back to the list

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.