GBP/JPY is expected to trade with a bullish outlook. The pair bounced off its key horizontal level at around 154.85, and it is also supported by its rising 50-period moving average. The process of higher highs and lows remains intact, which should confirm a positive outlook. Besides, the relative strength index is bullish above its neutrality area at 50.
To conclude, as long as 154.85 is not broken, it is likely toadvance to 156.40 and 157.00 in extension.
Alternatively, if the price moves in the direction opposite to the forecast, a Short position is recommended to be below 154.85 with the target at 154.40.
Strategy: BUY, Stop loss at 154.85, Take profit at 156.40
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: 156.40, 157.00, and 157.55
Support levels: 154.40, 154.10, and 153.50.
The material has been provided by InstaForex Company - www.instaforex.com