GBPJPY is one of the most volatile currency pair with daily movement is about 160 pips daily. Intraday trading analysis (tips) on GBP/JPY for 4 July 2011, we recommend to trade long (buy) GBPJPY pair above 129.55 for target of 131.55 and 132.05 placing the stop loss below 129.05.
Reason for trading GBPJPY long: The GBPJPY pair has been trading with very volatility suggesting for the range trading opportunity. So trading with the support resistance levels we advice to traders to take long position only. The traders must only look for buying opportunity as long as the pair remains above 129.05 level. Technical indicators are however bullish, suggesting traders to trade cautiously as volatility may remain higher in GBPJPY pair.