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26.01.201808:56 Forex Analysis & Reviews: Technical analysis of GBP/JPY for January 26, 2018

Long-term review

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We will retain our upside target prediction today as well. The pair is reversing up and is now above its 20-period and 50-period moving averages. A strong support base has formed around 135.40, and should limit any downside room. In addition, the relative strength index is bullish above its neutrality area at 50 and calls for a new bounce.

Hence, above 154.80, look for a new rise to 155.60 and 156.10 in extension.

Alternatively, if the price moves in the direction opposite to the forecast, a short position is recommended below 154.80 with the target at 154.40

Strategy: BUY, stop loss at 154.80, take profit at 155.60

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: 155.50, 156.10, and 156.50.

Support levels: 154.40, 154.10, and 153.70

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