Tuesday, 18 April 2017

GBP/JPY Bounced off from 135.50




GBP/JPY has been slowly but steadily moving to the downside for months now but yesterday the pair finally reached a support at 135.50, formed a distinct hammer candlestick on the daily time-frame above that level and bounced off from it. Today the move to the upside continued after the fundamentals gave the pair a push and GBP/JPY climbed back to the resistance at 137.90 – 138.00 and it is currently testing it. A possible breakout above that resistance level could lead to a further move to the upside towards 139.30, which coincides with the (MA)89 indicator on daily time-frame. Whether or not the pair will break out above it remains to be seen, as it has been testing it since the end of February this year.

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