- GBP/JPY broke major support at 174.20 in Wednesday’s trade and edged lower.
- The pair hit session lows at 172.19 before paring some losses, currently it is trading around 172.82 levels.
- Next major support below 174.20 levels is at 172 (trendline joining 175.78, 175.75, 175.50, 174.88).
- Bias is definitely lower, RSI on dailies is around 11, its weakest level last seen since May 2012, major moving averages are all biased lower and price action is well below the cloud.
- Further weakness can be seen on breaks below 172 levels, Oct 22 lows at 171.06 next bear target.
Recommendation: Hold short position as per our previous call, lower stops to 174 http://www.econotimes.com/FxWirePro-GBP-JPY-breaks-major-support-at-17420-decline-till-171-is-possible-138545
The material has been provided by InstaForex Company – www.instaforex.com