GBP/JPY is expected to trade with a bullish outlook. The pair broke above its 20-period and 50-period moving averages and accelerated on the upside. The relative strength index is bullish above its neutrality level at 50 and lacks downward momentum. The rising 20-period moving average crossed above the 50-period one, which is positive and is playing a support role.
As long as 145.20 holds on the downside, look for a further upside towards 146.25 and even 146.60 in extension.
Alternatively, if the price moves in the opposite direction as predicted, a short position is recommended below 145.20 with the target at 144.60.
Strategy: BUY, Stop Loss: 145.20, Take Profit: 146.25.
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.
Resistance levels: 146.25, 146.60, and 147.45
Support levels: 144.60, 144.35, and 143.75.
The material has been provided by InstaForex Company - www.instaforex.com