Technical analysis of GBP/JPY for March 14, 2017

GBP/JPY is expected to trade with bullish bias above 139.55. Though the pair retreated from the resistance at 140.55, it is still above its rising 50-period moving average which plays the support role and maintains the upside bias. In addition, the downside potential should be limited by the key support at 139.55. Continuation of the consolidation cannot be ruled out, but its extent should be limited.

Hence, as long as 139.55 is not broken, we expect a new rise to 140.55 and even to 140.95 in extension.

The pair is trading above its pivot point. It is likely to trade in a wider range as long as it remains above its pivot point. Therefore, long positions are recommended with the first target at 140.55 and the second one at 140.95. In the alternative scenario, short positions are recommended with the first target at 139.30 if the price moves below its pivot points. A break of this target may push the pair further downwards, and one may expect the second target at 139. The pivot point is at 139.55.

Resistance levels: 140.55, 140.95, and 141.25

Support levels: 139.30,139.00, and 138.45

The material has been provided by InstaForex Company – www.instaforex.com

Source:: Technical analysis of GBP/JPY for March 14, 2017