In our last report about the GBP/JPY pair we predicted the downside movement earlier and we sold the pair at 145.95. The prices hit our two targets with more than +290 pips because the pair is trading stably below the key resistance level 148.00.
Today we will take another look to recognize the profitable opportunities for this week. We have had an upside trend line since October 11 - the pair broke it this month and retested it around 142.20, then the pound declined further against the Japanese Yen to trade now at 140.90 after it fell to 139.27. It’s making a small correction movement now and we expect the pair will decline again this week to achieve the sell targets. We have two important levels we have to pay attention to in the next few days at 138.65 and 143.40.
The Next Few Days
Based on this daily chart analysis, we can take sell positions around the current levels at 140.95 and place our first T/P level at 138.70 at the support level, with a second one at 135.90 - that is in case the pair breaks the support level down and closes a candle below it and is still trading under the moving average 50.
This week the markets don’t offer much hot news from the UK or Japan, except for the Manufacturing PMI from the UK on Friday but we have to follow the American reports about the Employment change because this data may affect the whole market.
