Technical analysis of GBP/JPY for July 11, 2017

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Our upside take profit target which we placed at 147.60 has been hit. The pair rebounded after hitting today's top, but a downside movement should be limited. The pair remains above its horizontal support at 146.46, and is expected to look for a higher top. The relative strength index is around its neutrality area at 50, showing a lack of momentum. Even though a continuation of the consolidation at the current stage cannot be ruled out, its extent should be limited.

As long as 146.45 is not broken down, a further advance is preferred with 147.60 and 148.00 as targets.

Alternatively, if the price moves in the opposite direction as predicted, a short position is recommended below 146.45 with the target at 146.00.

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: 146.45, Take Profit: 147.60.

Resistance levels: 147.60, 148.00, and 148.70

Support levels: 146.00, 145.55, and 145.00

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