GBP/JPY is expected to trade in a higher range. The pair is capped by its 20-period intraday MA and is looking for a higher target. The descending 50-period intraday MA also maintains a bearish bias. And the intraday RSI stays below 50 and is negatively oriented. The first target to the upside is therefore set at the horizontal resistance and overlap at 195.30. A break below this level would open the way to further weakness towards 195.30 in extension. Only a break above the key support at 194.40 would call for a further upward move towards August 17's low at 194.10.
Trading recommendations:
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. As long as the price holds above its pivot point, long positions are recommended with the first target at 195.30 and the second target at 196.05. In the alternative scenario, short positions are recommended with the first target at 194.10 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 193.80. The pivot point is at 194.40.
Resistance levels: 195.30 196.05 196.75
Support levels: 194.10 193.80 193
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