GBP/JPY is expected to trade in a higher range as the bias remains bullish. The pair stays above its 20-period moving average, which remains above the 50-period one. European stocks stabilized, with the STOXX Europe 600 rising 0.2%. Germany's DAX was broadly flat, while the UK's FTSE 100 added another 0.4%. And the relative strength index is above 50. Further upside is expected with 141.10 and 142.45 as targets.
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 141.10 and the second one, at 142.45. In the alternative scenario, short positions are recommended with the first target at 138.20 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 136.40. The pivot point is at 139.20.
Resistance levels: 141.10, 142.45, 143.50
Support levels: 138.05, 136.40, 134.95
The material has been provided by InstaForex Company - www.instaforex.com