Dmitriy Chernovolov, Technical Analyst who has been actively following the FX markets for the last 11 years. He uses a systematic trend following approach combined with a proven money management system. Dima prefers to combine multiple technical analysis tools (e.g. Fibonacci retracements, trendlines, indicator divergences, Japanese candlesticks, Elliott Waves as well as horizontal support and resistance levels on different time-frame charts) to identify high probability synergetic trade setups with a high reward/risk ratio.

GBP/JPY: buy targets - 170.00 and 172.00

By: Dmitriy Chernovolov

  • GBP/JPY reached sell target 166.00
  • Next buy targets - 170.00 and 172.00

GBP/JPY recently reversed up sharply from the support zone lying between the support levels 166.00 (previous sell target set for this currency pair) and 165.00. This support zone was further strengthened by the lower daily Bollinger Band. The upward reversal from this support zone created the daily Japanese candlesticks reversal pattern Hammer, as you can see from the daily GBP/JPY chart below.

With the daily indicators RSI and Stochastic both still moving in the oversold territory - GBP/JPY can be expected to correct up from the current levels toward the next buy targets at the resistance levels 170.00 and 172.00.

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