GBP/JPY is expected to trade with a bullish outlook. The pair managed to hold above its key level at 148.40, and the process of higher highs and lows remains intact on the prices. Even though a continuation of the consolidation cannot be ruled out at the current stage, its extent should be limited by 148.40.
As long as this threshold is not broken, a further advance is expected to 148 and 147.75 in extension.
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 SHORT position is recommended below 148.40 with the target at 148.00.
Strategy: BUY, Stop Loss: 148.40, Take Profit: 149.45
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: 149.45, 149.70 and 150.20
Support levels: 148.00, 147.75, and 147.15
The material has been provided by InstaForex Company – www.instaforex.com