The GBP/JPY pair was abstracted twice around 139.75 as seen on the provided four hour chart, while a clear negative divergence appeared on Stochastic. These price behaviors might causesome kind ofdownside correction over intraday basis; particularly if 138.20 zones are breached. Classically, the awaited breakout will create a double top formation but let us be patient until it occurs. Note that, this correction will not cancel out the bullishness of the daily basis which we discussed in our previous reports.
The trading range for today is among key support at 135.50 and key resistance at 143.30.
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, selling the pair below 138.20 targeting 136.00 and stop loss above 139.70 might be appropriate.|