Technical analysis of GBP/JPY for August 17, 2017

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GBP/JPY is under pressure and expected to trade in lower range. The pair is consolidating and broke below its 20-period and 50-period moving averages. The relative strength index is below its neutrality level at 50 and lacks upward momentum. In addition, 142.25 is playing a key resistance role, which should limit the upside potential.

As long as this key level holds on the upside, look for a further drop towards 141.20 and even 140.90 in extension.

Alternatively, if the price moves in the opposite direction as predicted, a long position is recommended above 142.25 with the target at 142.65.

Strategy: SELL, Stop Loss: 142.25, Take Profit: 141.20.

Chart Explanation: the black line shows the pivot point. The price above the pivot point indicates the bullish position; and when it is below the 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.

Resistance levels: 142.65, 143.15, and 144.00

Support levels: 141.20, 140.90, and 140.00

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