Technical analysis of GBP/JPY for September 22, 2017

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Our first target which we predicted in yesterday's analysis has been hit. The pair is still trading on upside and expected to post some further gains. From a chartist point of view, the pair has broken above a declining trend line. However, the 30-min RSI is posting a bearish divergence calling for caution.

As a consequence, above 151.25, a further advance can be expected towards 152.90 and even 153.40.

Alternatively, if the price moves in the direction opposite to the forecast, a short position is recommended below 151.25 with the target at 151.00.

Strategy: BUY, Stop Loss: 151.25, Take Profit: 152.90

Chart Explanation: the black line shows the pivot point. The price above the pivot point indicates long positions; and when it is below the pivot points, it indicates short positions. 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: 152.90, 153.40 and 154.00

Support levels: 151.00, 149.35, and 149.35

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