Trade of the Day: GBP/JPY

By: Dima Chernovolov

GBP/JPY recently broke the key hourly resistance level 150.55 which was previously identified by Autochartist. Autochartist rates the significance of this resistance level at the 3-bar level – which is the result of the 3 previous price reversals for this price level. GBP/JPY is expected to rise further toward the forecast price 151.02.

As can be seen from the daily GBP/JPY chart below – the price earlier reversed up from the support zone lying between the support level 149.10 (which has been reversing the price from March), lower daily Bollinger Band and the 38.2% Fibonacci correction of the upward impulse from February. The proximity of this support area adds to the probability GBP/JPY will continue to rise toward the forecast price 151.02.