GBP/JPY is under pressure and expected to trade with a bearish outlook. The pair is capped by a declining trend line, which confirmed a negative outlook. The downward momentum is further reinforced by both falling 20-period and 50-period moving averages. The relative strength index is heading downward.
Therefore, below 148.95, expect a return with targets at 147.45 and 146.95 in extension.
Alternatively, if the price moves in the direction opposite to the forecast, a long position is recommended above 148.95 with the target at 149.25.
Strategy: SELL, Stop Loss: 148.95, Take Profit: 147.45
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 points, 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: 149.25, 149.50 and 150.05
Support levels: 147.45, 146.95, and 146.40
The material has been provided by InstaForex Company - www.instaforex.com