Our yesterday's upside target of around 115 pips has been hit. We still expect GBP/JPY to continue its upside movement and place our target at 147.00. GBP/JPY is expected to continue its upside movement above 145.30. The pair is trading above its rising 20-period and 50-period moving averages, which play support roles and maintain the upside bias. The relative strength index lacks downward momentum. The downside potential should be limited by the key support at 145.30.
Therefore, as long as this key level holds on the downside, look for a new challenge to 128.25 and even to 129.05 in extension.
Alternatively, if the price moves in the opposite direction as predicted, a short position is recommended below 144.85 with the target at 144.00.
Chart Explanation: the black line shows the pivot point. The price above pivot point indicates the bullish position and when it is below pivot points, it indicates a short position. 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.
Strategy: BUY, Stop Loss: 145.30, Take Profit: 147.00.
Resistance levels: 147.00, 147.90, and 148.50
Support levels: 144.85, 144.00, and 143.15
The material has been provided by InstaForex Company - www.instaforex.com