Technical analysis of GBP/JPY for July 26, 2017

GBP/JPY is expected to trade with bullish outlook as far as support holds at 145.30. The pair is trading above its rising 20-period and 50-period moving averages, which are playing support roles and maintain the upside bias. The relative strength index is above its neutrality level at 50 and lacks downward momentum.

In addition, 145.30 is playing a key support role, which should limit the downside potential. As long as this key level is not broken, look for further upside moves towards 146.30 and even 146.60 in extension.

Alternatively, if the price moves in the opposite direction as predicted, a short position is recommended below 145.30 with the target at 144.95.

Strategy: BUY, Stop Loss: 145.30, Take Profit: 146.30.

Chart Explanation: the black line shows the pivot point. The price above pivot point indicates the bullish position and when it is below pivot points, it indicates a short position. 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: 146.30, 146.60, and 147.00

Support levels: 144.95, 144.45, and 143.75.

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