GBP/JPY is expected to prevail its upside movement. The pair remains above its horizontal support at 0.8480 and is currently testing the support of its 50-period moving average. The 20-period moving average is still above the 50-period one, which should confirm a bullish bias. In addition, the relative strength index is around its neutrality area at 50, showing a lack of momentum. Even though a continuation of the consolidation cannot be ruled out, its extent should be limited.
As long as 142.00 is not broken below, expect a break above 143.40 at first, which will allow for an upside acceleration to 144.00 as likely.
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 143.40 and the second one at 144.00. In the alternative scenario, short positions are recommended with the first target at 141.60 if the price moves below its pivot points. A break of this target may push the pair further downwards, and one may expect the second target at 140.65. The pivot point is at 142.00.
Resistance levels: 143.40, 144.00, and 144.55
Support levels: 141.60,140.65, and 140.00
The material has been provided by InstaForex Company - www.instaforex.com