Technical analysis of GBP/JPY for January 08, 2018

GBPJPYM30.png

GBP/JPY is expected to trade with a bullish outlook. The pair is rebounding and challenging the 20-period moving average. The relative strength index is turning up. A downside potential should be limited by the key support at 152.90.

To conclude, as long as this key level is not broken, a further upside to 153.65 and even to 153.85 seems more likely to occur.

Alternatively, if the price moves in the direction opposite to the forecast, a short position is recommended below 152.90 with the target at 152.50

Strategy: buy, stop loss at 152.90, take profit at 153.65

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: 153.65, 153.85, and 155.

Support levels: 152.50, 152.10, and 151.65

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