GBP/JPY is expected to trade with the upside movement. The pair is trading above the rising 50-period moving average which is playing a support role and maintains the positive outlook. The relative strength index is supported by a rising trend line since August 17 and is above its neutrality area at 50. A support base at 130.90 has been formed and should limit the downside potential. As long as 130.90 holds on the downside, look for a further rise toward 132.55 and 133.20 in extension.
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 132.55 and the second one, at 133.20. In the alternative scenario, short positions are recommended with the first target at 130.00 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 129.20. The pivot point is at 130.90.
Resistance levels: 132.55, 133.20 , 134.60
Support levels: 130.00, 129.20, 128.60
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