Technical analysis of GBP/JPY for January 02, 2018

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GBP/JPY is expected to trade with a bullish outlook. The intraday outlook remains bullish, as the pair bounced off its key horizontal support at 151.90, and is now heading upward towards 152.60. The intraday relative strength index is displaying strong bullish momentum. In addition, the 50-period moving average is heading upward, and calls for a new rise.

In these perspectives, as long as 151.90 is not broken, likely advance to 152.60 and 153.00 in extension.

Alternatively, if the price moves in the direction opposite to the forecast, a short position is recommended below 151.90 with the target at 151.20

Strategy: BUY, Stop Loss: 151.90, Take Profit: 152.60

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: 152.35, 152.60, and 153.00

Support levels: 151.45, 151.20, and 151.00

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