GBP/JPY is expected to trade with bullish bias above 146.80. The pair is posting a pullback and is currently testing the support of its 50-period moving average. Meanwhile the 20-period moving average is above the 50-period one, and the relative strength index is around its neutrality area at 50, lacking downward momentum.
As long as 146.80 is not broken below, further upside is expected with 147.85 and 148.20 as the next targets.
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 147.85 and the second one at 148.20. In the alternative scenario, short positions are recommended with the first target at 146.35 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 145.75. The pivot point lies at 146.80.
Resistance levels: 147.85, 148.20, and 148.65
Support levels: 146.35,145.75, and 145.00
The material has been provided by InstaForex Company - www.instaforex.com