The GBP/JPY pair declined sharply after breaching the trading range areas, but we have been able to catch two positive technical factors that encouragepredicting a potential upside recovery over intraday basis.
1-A bullish harmonic AB=CD pattern, where the 161.8% Fibonacci level of BC leg resides at 131.70.
2-RSI 14 is presently valued at 30.00-oversold areas-.
The trading range for today is among key support at 128.60 and key resistance at 134.80.
The general trend over short term basis is to the downside, targeting 118.80 as far as areas of 150.75 areas remain intact.
Support131.70131.00130.50130.00128.90Resistance132.50133.15133.60134.15134.80RecommendationBased on the charts and explanations above our opinion is, buying the pair around 131.65 targeting 133.60 and stop loss below 130.00 might be appropriate.