Technical analysis of GBP/JPY for June 28, 2017

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All our targets which we predicted for the GBP/JPY pair have been hit. Our forecasts for GBP/USD have been true since the 1st June. The pair is still holding on the upside. The upward momentum is further reinforced by the rising 20-period and 50-period moving averages. The relative strength index is mixed with a bullish bias.

European Central Bank President Mario Draghi pointed out that the economic recovery in the eurozone remained on track with signs of reflationary pressures. Besides, he said the central bank could adjust its policy tools of sub-zero interest rates and massive bond purchases. Such hawkish comments sparked a wave of selling in government bonds in Germany, Sweden, the U.K., and the U.S.

To sum up, as long as 144.00 is not broken, look for the continuation of the uptrend with targets at 146.15 and 147.00 in extension.

Alternatively, if the price moves in the opposite direction as predicted, a short position is recommended below 144.00 with the target at 143.20.

Chart Explanation: the black line shows the pivot point. The price above pivot point indicates the bullish position and when it is below pivot points, it indicates a short position. The red lines show the support levels and the green line indicates the resistance levels. These levels can be used to enter and exit trades.

Strategy: BUY, Stop Loss: 144, Take Profit: 146.15.

Resistance levels: 146.15, 147.00, and 148.05

Support levels: 143.20, 142.80, and 142.00

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