Overview

Proceeding from H4 chart, today GBP/JPY is trading above the Support level 123.00 with a slightly bullish correction and is stabilizing above it keeping its move above the upward line trend. Break out of the Support area 123.00 - 122.25 may lead to breaking through the upward trend line, which may indicate to reversing its bullish movement during last week in order to take a new bearish movement. So if the pair is able to break the Support area it will be a good opportunity to sell and also it will open the way to reach the support level of 121.10 to test it.
Therefore we should wait for the breaking through this level to provide new buy-signals.
On the other hand, if the pair bounces from the Support area of 123.00 - 122.25 and breaks the Resistance level 124.45, this will denote a strong indicator for a bullish movement to continue its upward trend that had started last week and open the way towards the Resistance level 125.25.
Breaking this Resistance level will indicate the bullish strength, providing new buy-signals and also a good opportunity to buy enabling to reach the 126.00 level. Proceeding from the today's H4 chart technical indicators provide bearish signal, but as long as the resistance area 123.00 - 122.65 is unbroken, the upward move is still expected also invalidating the bearish outlook. Therefore, we should wait longer for confirmations before making the decision.

Resistance and Support Levels

R3(126.30)

R2(125.25)

R1(124.45)

S1(123.00)

S2(122.25)

S1(121.10)

Trading Recommendations 

According to previous analysis we recommend selling after breaking the Support area with TP 121.00; SL closing 4 hours above the suppport area.