Technical analysis of GBP/JPY for March 17, 2017

GBP/JPY is expected to continue the upside movement. The pair has broken above a negative trend line, as well as both 20-period and 50-period moving averages, and is expected to continue its technical rebound. Meanwhile the 20-period moving average has just crossed above the 50-period one, which is a bullish technical signal. And the relative strength index has been supported by a rising trend line and is above its neutrality area at 50. The intraday bias remains positive.

As long as 139.65 isn’t broken, further bounce is likely with 140.50 and 140.90 as targets.

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 140.50 and the second one at 140.90. In the alternative scenario, short positions are recommended with the first target at 139.25 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 138.85. The pivot point is at 139.65.

Resistance levels: 139.80, 140.05, and 140.55

Support levels: 138.75,138.50, and 138.00

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

Source:: Technical analysis of GBP/JPY for March 17, 2017