GBP/JPY is expected to continue its rebound. The pair is supported by its rising 50-period moving average and has crossed above its 20-period moving average. Meanwhile the relative strength index still stays above 50. As long as 144.10 is not broken, further bounces are preferred with 144.95 and 145.30 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 144.95 and the second one at 145.30. In the alternative scenario, short positions are recommended with the first target at 143.90 if the price moves below its pivot point. A break of this target is likely to push the pair further downwards, and one may expect the second target at 143.50. The pivot point lies at 144.10.
Resistance levels: 144.95, 145.30, 145.50
Support levels: 143.90,143.50, 143.20
The material has been provided by InstaForex Company - www.instaforex.com