Trade of the Day: GBP/JPY
GBP/JPY falling toward the 15-minute key support level 171.21, which was recently identified by Autochartist. GBP/JPY rates the significance of this support level at the 3-bar level – which is the result of the 3 earlier reversals from this price level. GBP/JPY is expected to fall further toward the support level 171.21.
As can be seen from the weekly GBP/JPY chart below – the pair earlier reversed down from the major resistance area located between the long-term resistance level 172.20 (which stopped the weekly uptrend at the end of last year) and the upper weekly Bollinger Band. The proximity of this resistance area and the overbought weekly Stochastic add to the probability GBP/JPY will continue to fall toward the support level 171.21.