GBP/JPY is expected to trade with a bullish bias. The pair has bounced up from another test of support at 143.85, which should limit the downside attempts. The rising 20-moving average just crossed above the 50-period one, which is a bullish signal. The relative strength index is above its neutrality level at 50 and lacks downward momentum. As long as 143.85 is support, a further advance is expected with the horizontal resistance at 144.55. A break above this level would open the way to a further upside toward the next resistance at 144.90.
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 144.55 and the second one at 144.50. In the alternative scenario, short positions are recommended with the first target at 143.55 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 143.15. The pivot point lies at 143.85.
Resistance levels: 144.55, 144.90, 145.60
Support levels: 143.55, 143.15, 142.50
The material has been provided by InstaForex Company - www.instaforex.com