GBP/JPY is expected to trade with a bullish outlook above 139.45. The pair has bounced up after another test of its former declining trend line, which becomes a support role, and broke above its 20-period and 50-period moving averages. The relative strength index is above its neutrality level at 50 and lacks downward momentum. In addition, 139.45 is playing a key support role, which should limit the downside potential.
As long as this key level is not broken, look for a further upside toward 140.80 and even 141.20 in extension.
Alternatively, if price moves in the opposite direction as predicted, short position is recommended below 140.80 with targets at 141.20 and 141.80.
Graph Explanation: The black line shows the pivot point, present price above pivot point indicates the bullish position and below pivot points indicates the 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: 139.45, Take Profit: 140.80
Resistance levels: 140.80, 141.20, and 142.00
Support levels: 139.00,138.60, and 138
The material has been provided by InstaForex Company - www.instaforex.com