GBP/JPY is expected to trade with bullish bias. The pair has accelerated to the upside after breaking above its previous key resistance at 185.30, which should now play a key support role. Both 20-period and 50-period intraday MAs maintain a bullish bias, while the intraday RSI is positively oriented. Further upside is therefore expected with the next horizontal resistance and overlap set at 186.55 at first. A break above this level would call for further advance towards 187.15.
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 186.55 and the second target at 187.15. In the alternative scenario, short positions are recommended with the first target at 184.80 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 184.25. The pivot point is at 185.30.
Resistance levels: 186.55 187.15 188
Support levels: 183.90 183.50 182.75
The material has been provided by InstaForex Company - www.instaforex.com