Technical analysis of GBP/JPY for January 09, 2018

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GBP/JPY is under pressure and expected to trade with bearish outlook. The pair recorded lower tops and lower bottoms , which confirmed a negative outlook. The downward momentum is further reinforced by both declining 20-period and 50-period moving averages. The relative strength index lacks upward momentum.

To conclude, as long as 153.00 is resistance, expect a new test with targets at 151.75 and 151.50 in extension.

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

Strategy: Sell, stop loss at 153.00, take profit at 151.75

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: 153.65, 153.85, and 155.

Support levels: 151.75, 151.50, and 151.00

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