The yesterday take profit target for GBP/JPY has been hit. After hitting the mark of 140.80 (today's high), which was also our target moved downward, the pair went downwards. Therefore, the level played a resistance role. The pair is now expected to trade in a lower range below 140.60. The pair has clearly reversed downwards after its failure to break above the resistance at 140.80. The 20-period and 50-period moving averages are turning down and should continue to push the prices lower. Besides, the relative strength index is negative below its neutrality area at 50.
Therefore, as long as 140.60 is not surpassed, expect a return to 139 and 138.60 in extension.
Alternatively, if the price moves in the opposite direction as predicted, long position is recommended above 140.60 with targets at 141.20 and 141.80.
Chart 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 : SELL, Stop Loss: 140.60, Take Profit: 139
Resistance levels: 141.20, 141.85, and 142.15
Support levels: 139.00,138.60, and 138
The material has been provided by InstaForex Company - www.instaforex.com