Technical analysis of GBP/JPY for January 17, 2018

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Our first target which we predicted in the previous analysis has been hit. The pair is bouncing off its rising trend line support and has also broken above its key horizontal level at 152.00. The upside potential has been opened now toward 1.3920. In addition, a bullish cross has been identified between the 20-period and 50-period moving averages.

In which case, as long as 152.00 isn't broken, likely advance to 153.20 and 154.00 in extension.

Alternatively, if the price moves in the direction opposite to the forecast, a short position is recommended below 152.00 with the target at 151.55

Strategy: BUY, stop loss at 152.00, take profit at 153.20

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 point, 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: 153.20, 154.00, and 154.50.

Support levels: 151.55, 151.00, and 150.45

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