Technical analysis of GBP/JPY for August 24, 2017

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GBP/JPY is expected to trade with bullish outlook above 139.65. The pair has bounced up from support at 139.25, which should limit the downside potential, and is holding on the upside. The rising 50-period moving average is playing a support role and suggests that the pair still has potential for a further advance. The relative strength index is above its neutrality level at 50 and lacks downward momentum.

As long as 139.65 is support, look for a further advance towards 140.80 and even 141.10 in extension.

Alternatively, if the price moves in the opposite direction as predicted, a short position is recommended below 139.65 with the target at 139.25.

Strategy: BUY, Stop Loss: 139.65, Take Profit: 140.80.

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: 140.80, 141.10, and 142.00

Support levels: 139.25, 138.60, and 138.00

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