GBP/JPY Looking For Stronger Direction

The British pound sterling achieved noticeable gains against its US counterpart during the previous trading session, touching our first awaited target at 139.90, recording its highest level during the last session at 140.07.

On the technical side, and with a closer look at the 4-hour chart, we find negative signs appearing on the stochastic indicator, which contradicts the positive impulse coming from the 50-day moving average.

Thus, we will stand on the fence for a moment until the direction is clearer in a more accurate manner so that we will face one of the following scenarios:

Confirming the continuation of the rise, we need to witness a clear and strong breach of the 140.20 / 140.25 resistance level, targeting 140.65, and the gains may extend later towards 141.20.

Activating short positions below 139.70 to target 139.35 and 139.100, respectively.

Note: the level of risk is high today

S1: 139.35	R1: 140.25
S2: 138.70	R2: 140.65
S3: 138.40	R3: 141.20