GBP/JPY is expected to trade with a bullish outlook above 148.20. The pair keeps trading on the upside after locating a key support at 148.20. The ascending 20-period moving average, which stands on the 50-period one, is providing extra support. And the relative strength index stays firm, showing sustained upward momentum for the pair. As intraday bullishness persists, the pair is expected to rise toward the first upside target at 149.40 and in extension, 149.90.
Alternatively, if the price moves in the direction opposite to the forecast, a short position is recommended below 148.20 with the target at 149.40.
Strategy: BUY, Stop Loss: 148.20, Take Profit: 149.40
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 points, 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: 149.40, 149.90 and 150.35
Support levels: 147.75, 147.25, and 146.80
The material has been provided by InstaForex Company - www.instaforex.com