Technical analysis of GBP/JPY for July 29, 2015

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GBP/JPY is expected to trade in an upper range. The pair stays above its key support at 192.90 and is moving sideways. Further upside is therefore expected with the next horizontal resistances and overlaps set at 194.30 (a high hit on July 17) and then at 194.70. Only a break below the key support at 192.90 would open the way to further weakness towards a bottom at 1945 at first. The second alternative target is set at 191.44 (a low hit on July 27).

Technical comment:

The intraday RSI stands above 50 and is well directed.

Trading recommendations:

The pair is trading above its pivot point. It is likely to trade in a higher range as far as it remains above its pivot point. As long as the price keeps above its pivot point, long positions are recommended with the first target at 194.35 and the second target at 194.70. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 192. A break of this target would push the pair further downwards, and one may expect the second target at 191.45. The pivot point is at 192.90.

Resistance levels: 194.35 194.70 195.35

Support levels: 192 191.45 190.85

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

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