Technical analysis of GBP/JPY for December 06, 2017

GBPJPYM30.png

Our first target which we predicted in yesterday's analysis has been hit. The pair is in a downtrend, capped by its intraday falling trend line. Both the 20-period and 50-period moving averages are turning down, and should confirm a negative outlook. Last but not least, the relative strength index is bearish below its neutrality area at 50.

In conclusion, as long as 151.30 is not surpassed, look for a new pullback to 149.30 and 148.60 in extension.

Alternatively, if the price moves in the direction opposite to the forecast, a long position is recommended above 151.30 with the target at 151.85

Strategy: SELL, Stop Loss: 151.30, Take Profit: 149.30

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: 151.85, 152.40, and 153

Support levels: 149.30, 148.60, and 148

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