Technical analysis of GBP/JPY for November 20, 2017

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GBP/JPY is expected to trade with a bullish outlook. The pair bounced off its nearest key support at 147.65, and is likely to challenge the resistance at 149.25. Both the 20-period and 50-period moving averages are heading upward now, and should continue to push the prices higher. Last but not least, the relative strength index is reversing up, calling for a new rebound.

To conclude, as long as 148.15 is not broken, look for a new rise to 149.25 and 149.60 in extension.

Alternatively, if the price moves in the direction opposite to the forecast, a short position is recommended below 148.15 with the target at 149.25.

Strategy: BUY, Stop Loss: 148.15, Take Profit: 149.25

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: 149.25, 149.60 and 150.15

Support levels: 147.65, 146.95, and 146.30

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