Technical analysis of GBP/JPY for December 20, 2017


All our upside targets which we predicted in yesterday's analysis have been hit. Despise of recent pullback, the pair is still trading above its rising 50-period moving average. The relative strength index is mixed with a bullish bias. The downside potential shoulder is limited by the key support at 150.85.

Hence, as long as this key level is not broken, look for a further upside to 151.90 and even to 152.25 in extension.

Alternatively, if the price moves in the direction opposite to the forecast, a short position is recommended below 150.85 with the target at 150.40

Strategy: BUY, Stop Loss: 150.85, Take Profit: 151.90

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: 151.90, 152.25, and 152.70

Support levels: 150.40, 150.15, and 149.60

The material has been provided by InstaForex Company -