The GBP/JPY pair inclined yesterday, approaching the key resistance levels of 134.00. The overbought sign that occurred around this level force it to decline again during the Asian session. Currently, it is very close to the pivotal support levels around 132.50 while Stochastic is moving inside oversold areas. We still think that the bullish harmonic butterfly pattern could send the pair to the upside once more over intraday basis, particularly if Stochastic succeeded in achieving a positive crossover.
The trading range for today is among key support at 130.50 and key resistance at 136.20.
The general trend over short term basis is to the downside, targeting 118.80 as far as areas of 150.75 areas remain intact.
|Recommendation||Based on the charts and explanations above our opinion is, buying the pair with a break of 132.90 targeting 135.00 and stop loss below 131.30 might be appropriate.|