Trade of the Day: GBP/JPY
By: Dima Chernovolov
GBP/JPY recently broke the key support level 166.55, which was previously identified by Autochartist on the 30-minute charts. Autochartist rates the Significance of this support level at the 3-bar level – which is the result of the three previous price reversals from this price level. GBP/JPY is expected to continue to fall toward the forecast price 166.24.
As can be seen from the daily GBP/JPY chart below – the price earlier reversed down from the key resistance level 168.50 (the previous monthly high from April) intersecting with the upper daily Bollinger Band. The proximity of this resistance level and the overbought daily Stochastic increase the probability GBP/JPY will continue to fall toward the forecast price 166.24.