GBP/JPY is expected to trade with a bullish bias. The pair is bouncing off its support base around 143.90, representing an intraday horizontal level. Both the 20-period and 50-period moving averages are still heading upward, and are calling for further advance. In addition, the relative strength index is mixed to positive above its neutrality area at 50. Therefore, as long as 143.90 is not broken, look for a new rebound to 145 and 145.40 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 145 and the second one, at 145.40. In the alternative scenario, short positions are recommended with the first target at 143.55 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 143.10. The pivot point is at 143.90.
Resistance levels: 145.00, 145.40, 146.00
Support levels: 143.55, 143.10, 142.50
The material has been provided by InstaForex Company - www.instaforex.com