GBP/JPY: requires to follow up 3/8/2022

GBP/JPY succeeded in touching the first target required to be achieved during the previous trading session at 159.50, recording its lowest level at 159.44, which forced it to rebound upwards as a result of hitting the mentioned support.

Technically, we find the 50-day simple moving average pressuring the price from above and the stochastic indicator around the overbought areas on the 4-hour time frame.

We tend to be negative, but with caution, as the daily trading remains below 162.00, and it is preferable to witness a break of 161.00, targeting 159.70 first target, and then 158.70 next station, as long as the price is stable below 162.00.

Trading stability again above 162.00 leads the pair to recover temporarily and aims to retest 162.90 before attempting to decline again.

Note: the level of risk is high.

Note: Trading on CFDs involves risks. Therefore, all scenarios may be possible. This article is not a recommendation to buy or sell but rather an explanatory reading of the price movement on the chart.

S1: 159.70	R1: 162.95
S2: 157.90	R2: 164.45
S3: 156.40	R3: 166.20