Technical analysis of GBP/JPY for February 6, 2018

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All our downside targets which we predicted in previous analysis have been hit. GBP/JPY is under pressure. The pair accelerated on the downside. In addition, the downward momentum is further reinforced by both declining 20-period and 50-period moving averages. The relative strength index has broken down its oversold level of 30.

Hence, as long as 153.00 is not surpassed, look for a new decline with targets at 151.00 and 150.15 in extension.

Alternatively, if the price moves in the direction opposite to the forecast, a Long position is recommended to be above 153.00 with the target at 154.60.

Strategy: SELL, Stop loss at 153.00, Take profit at 151.00

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: 153.50, 154.60, and 155.10

Support levels: 151.00, 150.15, and 149.65.

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