GBP/JPY is expected to continue its upside movement. The pair remains bullish above its nearest support at 161.20, and is expected to post a new rebound. The 20-period and 50-period moving averages are turning up, and also play strong support roles. Besides, the relative strength index is mixed to bullish above its neutrality area at 50. To sum up, as long as 161.20 holds on the downside, look for further advance to 163.35 and 164.15 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 163.35 and the second one, at 164.15. In the alternative scenario, short positions are recommended with the first target at 160.25 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 159.45. The pivot point is at 161.20.
Resistance levels: 163.35, 164.15, 165.25
Support levels: 160.25, 159.45, 158.30
The material has been provided by InstaForex Company - www.instaforex.com