GBP/JPY is under pressure and expected to continue its downside movement. The pair remains supported by its declining 50-period moving average, and is likely to post a new downside target. A strong resistance base around 148.40 has formed, and should also limit any upward attempts. The relative strength index lacks upward momentum.
Therefore, as long as 148.40 is not broken, further decline is expected to 147.40 and 147 in extension.
Alternatively, if the price moves in the direction opposite to the forecast, a long position is recommended above 148.40 with the target at 149.05.
Strategy: SELL, Stop Loss: 148.40, Take Profit: 147.40
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: 149.05, 149.50 and 150.05
Support levels: 147.40, 147.00, and 146.10
The material has been provided by InstaForex Company – www.instaforex.com
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