Technical analysis of GBP/JPY for February 7, 2018

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GBP/JPY is expected to trade with a bullish outlook. Despite the pair breaking below its 20-period and 50-period moving averages, it is still trading above the key support at 152.05, which should limit the downside potential. Even though a continuation of consolidation cannot be ruled out, its extent should be limited.

To conclude, as long as 152.05 holds on the downside, look for a further upside with targets at 153.35 and 153.90 in extension.

Alternatively, if the price moves in the direction opposite to the forecast, a short position is recommended to be below 152.05 with the target at 151.25.

Strategy: BUY, Stop loss at 152.05, Take profit at 153.35

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: 153.35, 153.90, and 154.40

Support levels: 151.25, 150.15, and 149.65.

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