Technical analysis of GBP/JPY for January 18, 2018

All our upside targets which we predicted in the previous analysis have been hit. The pair is moving upward and is expected to challenge the next resistance at 154.25. The 20-period moving average is turning up now and calls for a new rise. Additionally, the relative strength index managed to break above its neutrality area at 50, confirming a positive outlook.

Therefore, as long as 153.10 is not broken, likely advance to 154.25 and 165.95 in extension.

Alternatively, if the price moves in the direction opposite to the forecast, a short position is recommended below 153.10 with the target at 152.50

Strategy: BUY, stop loss at 153.10, take profit at 154.25

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 point, 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: 154.25, 154.95, and 155.50.

Support levels: 152.50, 152.00, and 151.45

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

Source:: Technical analysis of GBP/JPY for January 18, 2018