GBP/JPY is expected to continue its downside movement and we are going to retain our yesterday's outlook. The pair is holding on the downside. The downward momentum is further reinforced by both declining 20-period and 50-period moving averages. The relative strength index calls for another decline.
To conclude, as long as 151.95 is not surpassed, look for a new test with targets at 150.50 and 150.00 in extension.
Alternatively, if the price moves in the direction opposite to the forecast, a long position is recommended above 151.95 with the target at 152.40
Strategy: SELL, Stop Loss: 151.95, Take Profit: 150.50
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: 152.40, 152.85, and 153.15
Support levels: 150.50, 150.00, and 149.45
