GBP/JPY is expected to trade with bullish outlook. The pair formed an intraday "V-bottom" pattern, and now stands above its 50-period moving average, which is turning up. The relative strength index has broken above a falling trend line and calls for further advance. In addition, a strong support base at 148.40 has formed and has allowed for a stabilization.
To sum up, above 148.40, look for further advance to 149.45 and 149.80 in extension.
Alternatively, if the price moves in the direction opposite to the forecast, a short position is recommended below 148.40 with the target at 149.45.
Strategy: BUY, Stop Loss: 148.40, Take Profit: 149.45
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: 149.45, 149.80 and 150.35
Support levels: 148.00, 147.60, and 147.00
The material has been provided by InstaForex Company - www.instaforex.com