Technical analysis of GBP/JPY for February 21, 2017

GBP/JPY is expecteв to trade Further upside. The pair is trading above its rising 50-period moving average, which plays support role and maintains the upside bias. The relative strength index is above its neutrality level at 50 and lacks downward momentum. Additionally, 140.80 is playing a key support role, which should limit the downside potential. As long as this key level is not broken, look for a further upside toward 141.95. A break above this level would call for a further advance toward 142.40.

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 142.40 and the second one at 142.40. In the alternative scenario, short positions are recommended with the first target at 140.50, if the price moves below its pivot points. A break of this target is likely to push the pair further downwards, and one may expect the second target at 139.80. The pivot point is at 140.80.

Resistance levels: 141.95, 142.40, and 143.00

Support levels: 140.50,139.80, and 139.50

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

Source:: Technical analysis of GBP/JPY for February 21, 2017