12.08.201613:13 Forex Analysis & Reviews: Technical analysis of GBP/JPY for August 12, 2016

Long-term review

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

GBP/JPY is expected to trade with a bullish bias. The pair is rebounding on its horizontal support at 131.55, while the 20-period moving average has just crossed above the 50-period one.European stocks turned positive with the STOXX Europe 600 rebounding 0.8%. Germany's DAX rose 0.9%, the U.K.'s FTSE increased 0.7%, and France's CAC gained 1.2%. Further bounce is therefore expected with 132.70 and 133.20 as targets.

The pair is trading above its pivot point. It is likely to trade in a wider range as long as it remains above its pivot point. Therefore, long positions are recommended with the first target at 132.70 and the second one, at 133.20. In the alternative scenario, short positions are recommended with the first target at 130.90, if the price moves below its pivot points. A break of this target is likely to push the pair further downwards, and one may expect the second target at 130.50. The pivot point is at 131.55.

Resistance levels: 132.70, 133.20 , 134.60

Support levels: 130.90 , 130.50, 129.75

Back to the list

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.