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Technical analysis of GBP/JPY for August 31, 2015

Technical outlook and chart setups:

The GBP/JPY pair is seen to have bounced off its fibonacci 0.618 support around 182.80. The pair is trading around 186.00/187.00 now, keeping the uptrend intact. A break below the trend-line support, and subsequently 175.00, would confirm that the pair has formed a meaningful top and reversed lower. It is hence recommended to initiate fresh long positions now with risk below 182.00. Immediate support is seen at 182.80 followed by 175.00 and lower, while resistance is seen at 195.00/196.00 followed by 199.00 and higher respectively.

Trading recommendations:

Initiate long positions now, with stop at 182.00, targets are at 197.00 and 199.00.

Good luck!

The material has been provided by InstaForex Company - www.instaforex.com