Trade of the day: GBPJPY
The GBP/JPY is technically setting up for a push downwards on the short term. Price has found resistance at a confluence area between the 150.00 and the 150.25 price levels (highlighted in grey) [see m15 chart]. A break below the near-term support at the 149.700 zone (highlighted in sky-blue) would further consolidate this bearish momentum.
Bears can look to take profit at the 149.50 (highlighted in gold) and the 149.25 zones (highlighted in lime). For the 149.50 take profit level, traders can look to place stop order aggressively just above the 149.75 zone for an effective risk, reward management whilst for the latter stop order can be placed around the 150.00 level [see m15 chart].
Fig 1: 15 – Minute (m15) GBP/JPY Chart
Conversely, a break above the aforementioned confluence zone annuls this bearish bias, opening room for a possible push upwards.