GBP/JPY is set to a further advance. The pair validated an intraday "V"-bottom pattern, and is now heading upward. The 20-period moving average turned up, and also crossed above the 50-period one, which should be a strong positive signal. Moreover, the relative strength index is bullish above its neutrality area at 50. Looking ahead, as long as 160.30 remains support, look for a new rise to 162.45 and 163.25 in extension.
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. Therefore, long positions are recommended with the first target at 162.45 and the second one at 163.25. In the alternative scenario, short positions are recommended with the first target at 159.80 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 159.35. The pivot point is at 160.30.
Resistance levels: 162.45, 163.25, 164
Support levels: 159.80, 159.35, 158.60
The material has been provided by InstaForex Company - www.instaforex.com