GBP/JPY is expected to trade with bullish bias above 143.80. The pair is above its rising 50-period moving average which plays the support role and maintains the upside bias. In addition, the downside potential should be limited by the key support at 139.55. Continuation of the consolidation cannot be ruled out, but its extent should be limited.
Hence, as long as 143.80 is not broken, we expect a new rise to 145.00 and even to 145.60 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 145.00 and the second one at 145.60. In the alternative scenario, short positions are recommended with the first target at 143.30 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 143.00. The pivot point is at 143.80.
Resistance levels: 145.00, 145.60, and 146.35
Support levels: 143.30,143.00, and 142.20
The material has been provided by InstaForex Company - www.instaforex.com