GBP/JPY as predicted Yesterday is trading in a higher range. So, we will retain our Yesterday's target. The pair is currently trading above its rising trend line and is expected to post a technical rebound. The relative strength index is around its neutrality area at 50, lacking downward momentum. Even though a continuation of the consolidation in the current stage cannot be ruled out, its extent should be limited.
As long as 145.90 is not broken down, further advance is preferred with 146.90 and 147.50 as targets.
Alternatively, if the price moves in the opposite direction as predicted, a short position is recommended below 145.90 with the target at 145.05.
Chart Explanation: the black line shows the pivot point. The price above pivot point indicates the bullish position and when it is below pivot points, it indicates a 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: 145.90, Take Profit: 146.50.
Resistance levels: 146.90, 147.50, and 148.00
Support levels: 145.05, 144.15, and 143.15
The material has been provided by InstaForex Company - www.instaforex.com