GBP/JPY is expected to trade with a bullish bias. The pair broke above its 20-period and 50-period moving averages and accelerated on the upside. The rising 20-period and 50-period moving averages are playing support roles and maintain the upside bias. The relative strength index stands firmly above its neutrality level at 50 and lacks downward momentum. As long as 141.60 holds as support, look for a further rise towards 143.00 and even 143.65 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 143.00 and the second one at 143.65. In the alternative scenario, short positions are recommended with the first target at 141.20 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 140.75. The pivot point is at 141.60.
Resistance levels: 143.00, 143.65, 144.15
Support levels: 141.20, 140.75,140.00
The material has been provided by InstaForex Company - www.instaforex.com