Technical analysis of GBP/JPY for October 18, 2017

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GBP/JPY is expected to trade with a bullish bias above 148.05. The pair seems to have formed a "double-bottom" pattern on an intraday basis, which should confirm a bullish reversal. The 50-period moving average is now below the prices, and should play a strong support role. Besides, the relative strength index is above its neutrality area at 50.

Therefore, as long as 148.05 is not broken, the pair is likely to advance to 148.80 and 149.05 in extension.

Alternatively, if the price moves in the direction opposite to the forecast, a short position is recommended below 148.05 with the target at 147.75.

Strategy: BUY, Stop Loss: 148.05, Take Profit: 148.80

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: 148.80, 149.05 and 150.05

Support levels: 147.75, 147.50, and 147.00

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