GBP/JPY is expected to trade with bullish bias as pair is trading above the support 130.50. The pair is trading above its rising 20-period and 50-period moving averages, which act as support roles and maintain the upside bias. The relative strength index is bullish above its neutrality level at 50 and is heading upward. Additionally, the pair broke above the upper boundary of the Bollinger Band, which could signal the continuation of bullish acceleration. As long as the key support at 130.50 is not broken, look for a further upside toward 132.30 and 132.80 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 132.30 and the second one at 132.80. In the alternative scenario, short positions are recommended with the first target at 130.20 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 129.65. The pivot point lies at 130.50.
Resistance levels: 132.30, 132.80, 133.25
Support levels: 130.20, 129.65, 129.10
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