GBP/JPY is expected to trade with a bearish outlook. The pair accelerated on the downside and broke below the lower boundary of Bollinger Bands, which confirmed the continuation of the bearish trend. The relative strength index broke down its oversold level of 30.
To sum up, as long as 149.10 holds on the upside, a further drop to 148.00 and even to 147.70 seems more likely to occur.
Therefore, as long as 148.95 holds on the upside, look for a new decline to 148.00 and even to 147.75 in extension.
Alternatively, if the price moves in the direction opposite to the forecast, a long position is recommended above 149.10 with the target at 149.60.
Strategy: SELL, Stop Loss: 149.10, Take Profit: 148
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: 149.60, 150.00 and 150.50
Support levels: 148.00, 147.70, and 147.15
The material has been provided by InstaForex Company – www.instaforex.com