Technical analysis of GBP/JPY for July 12, 2017

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GBP/JPY is expected to trade with a bullish outlook and looking for limited upside as bias remains bullish. The pair remains supported by a rising trend line and stays above its 50-period moving average, which should maintain the positive bias. The relative strength index is around its neutrality area at 50, showing a lack of momentum. Even though a continuation of the consolidation in current stage cannot be ruled out, its extent should be limited.

As long as 145.55 is not broken down, a further advance is preferred with 146.50 and 146.80 as targets.

Alternatively, if the price moves in the opposite direction as predicted, a short position is recommended below 145.55 with the target at 145.25.

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: 145.55, Take Profit: 146.50.

Resistance levels: 146.50, 146.80, and 147.50

Support levels: 145.25, 144.50, and 144.00

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