In our last report about the GBP/JPY pair we recommended buying the pair around 148.65 and it rose to make a profit by more than +330 pips, but it returned back now to be just +135 pips. The prices didn’t hit our target at 152.80 but we are still keeping our positive vision for the pair and to confirm this we will take another look at the chart.
The pair is still trading above the ascending trend line from October 2016 and above the important support area we mentioned before at 147.93. We noticed a short-term trend line since last month and the pair tested it last week, then returned to rise again to trade now around 149.90. The Stochastic indicator started to cross over now at 26 level and the moving average is trading below the prices, so this supports our positive vision.
The Next Few Days
After the pair tested the short-term trend line and couldn’t break it down, we can take a buy position now at the current level at 149.90 and keep our first target at 151.30 and the second one at 152.80; that is in case the pair is still above our main trend line.
This week the markets don’t offer much news from Japan and we have just one economic figure from the UK on Friday - the Manufacturing Production.
