GBP/JPY

Monthly forecast-

The pair has been in a down trend from 174.75 levels, having broken the support trend line existing for two months. The pair has been making lower lows and lower highs for consecutive 4 weeks. This week it resumes the down trend, it crossed the previous week's high. We expect max it can stretch up to 172.10 levels. Until the pair crosses 173.60 on the down side, gates are open for 162.50 levels. The weekly momentum oscillators indicate the selling on rallies.

On the down side, the pair looks weak below 169.80 (previous week's low and 21-week EMA), the immediate support exists below this at 169.50. The short-term negative trend will be active below 169.50 for lower targets 168.30, 167.75, 167, 163.87, 163 and 162 levels. This view is valid until the pair trades below the 173.60 levels. On the up side, the pair has strong resistance at 172.10 and 173 levels.

Weekly basis-

The pair is taking small support at 171.50 levels, and it is trading above the 171.84 levels, which is a positive factor for the bulls, they can make 172.05-172.10 levels above this and can take the pair up to 172.34 and 172.72 levels. On the down side, the pair has strong support at 171 levels. A day close below this, the bears will take charge to make 170.65, 169.80, 169.50, 168.60, 168 and 167.50 levels, in the least case it can drift up to 165.50 levels. The major panic will be below the 169.45.

Intraday basis-

The pair is facing strong resistance at 172.05/172.10 levels. Safe traders can buy above 172.10 for 172.35, 172.52,172.72 and 173 levels. The pair looks weak below 171.45 for 171.30, 171.20, 171, 170.60 levels.