GBP/JPY has once again moved back higher from yesterday’s low at 136.73. The pair was supported by a slight recovery in the British Pound, especially against the USD. Currently, the pair is trading at 138.27 with immediate support at 137.77. Other support areas are at 137.40 and 137.22. The intraday resistance is at 138.44 while 138.77 is likely to serve as a strong resistance level.
The Bollinger-Band with two standard deviation is indicating support at 137.21. The SMA-50 is also indicating support at 137.74, while the SMA-21 is showing resistance at 139.73. The RSI is at 49 and appears to remain in the neutral zone for a while. The MACD has moved above the zero line after yesterday’s recovery. However, there are no signs of divergence or crossover yet.
The price pattern on the 4 hourly period currently favors intraday buy entries. A good buying entry would be near or slightly below 138.000. The intraday target would between 45 to 55 pips. A tight stop-loss for this trade would be just below the 137.60 level.