GBP/JPY is expected to prevail its upside movement. The pair posted a rebound after touching the rising 50-period moving average and broke above the 20-period one. The relative strength index has landed on the neutrality level at 50 and is turning up.
Hence, as long as 147.25 is not broken, look for a rebound to 148.20. A break above this level would bring a new upside to 148.60.
Alternatively, if the price moves in the direction opposite to the forecast, a short position is recommended to be below 147.25 with the target at 147.00.
Strategy: BUY, Stop loss at 147.25, Take profit at 148.20
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: 148.20, 148.60, and 149.10
Support levels: 147.00, 146.35, and 145.75