All our upside targets which we predicted in yesterday's analysis have been hit. GBP/JPY is expected to trade with a bullish outlook. The pair stands firmly above its nearest horizontal support at 152.90, which should limit any downside room. A bullish cross has just been identified between the 20-period and 50-period moving averages (a positive signal). Furthermore, the relative strength index stays above its neutrality area at 50, and shows upside momentum. To conclude, as long as 152.90 holds on the downside, look for further advance to 154.25 and 154.90 in extension.
Chart Explanation: The black line shows the pivot point. Currently, the price is above the pivot point which is a signal for long positions. If it remains below the pivot point, it will indicate short positions. The red lines show the support levels, while the green line indicates the resistance levels. These levels can be used to enter and exit trades.
Resistance levels: 154.25, 154.90, and 155.50.
Support levels: 152.90, 152.30, and 151.70.
The material has been provided by InstaForex Company - www.instaforex.com