GBP/JPY is tradking under pressure. The pair remains under pressure below its key resistance at 154.40, and is expected to post a new pullback towards 154.40. The falling 20-period and 50-period moving averages maintain the strong selling pressure, and should continue to push the prices lower. Even though a technical rebound cannot be ruled out, its extent should be limited.
As long as 154.40 is not surpassed, likely decline to 153.40 and 153.10 in extension.
Alternatively, if the price moves in the direction opposite to the forecast, a LONG position is recommended above 154.40 with the target at 155
Strategy: SELL, Stop loss at 154.40, Take profit at 153.40
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 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: 155.00, 155.40, and 155.70.
Support levels: 153.40, 153.10, and 152.60
The material has been provided by InstaForex Company - www.instaforex.com