Technical analysis of GBP/JPY for October 06, 2017

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All our targets which we predicted in yesterday's analysis have been hit precisely as we predicted. The pair remains under pressure below its resistance at 0.7120. In addition, the falling 50-period moving average should confirm a negative intraday outlook. The relative strength index lacks upward momentum, and calls for a new pullback. In that case, even though a technical rebound cannot be ruled out, its extent should be limited before further decline.

As long as 0.7120 holds on the upside, look for a return to 0.7030 and 0.7000 in extension.

Alternatively, if the price moves in the direction opposite to the forecast, a long position is recommended above 148.35 with the target at 149.05.

Strategy: SELL, Stop Loss: 148.35, Take Profit: 147.350

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: 149.05, 149.50 and 150.15

Support levels: 147.10, 146.60, and 146.00

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