Source: PaxForex Premium Analytics Portal, Technical Insight
The GBP/JPY cross gains some positive traction for the third successive day on Wednesday and maintains its bid tone through the early European session. The cross, however, retreats a few pips from a multi-day high and slides back below the 166.00 mark following the release of UK inflation figures.
GBP/JPY,D1
Pivot: 165.64
Analysis:
As long as the price is below 166.50 follow the recommendations below:
- Time frame: D1
- Recommendation: short position
- Entry point: 165.64
- Take profit 1: 163.00
- Take Profit 2: 159.70
Alternative scenario:
If the level of 166.50 is broken-out, follow the recommendations below:
- Time frame: D1
- Recommendation: long position
- Entry point: 166.50
- Take profit 1: 168.80
- Take profit 2: 171.15
Comment:
RSI indicates the potential for a downtrend in the medium term.
Key levels:
| Resistance | Support |
| 171.15 | 163.00 |
| 168.80 | 159.70 |
| 166.50 | 158.00 |
