GBP/JPY is expected to trade with a bullish bias above 146.15. The pair is trading above the rising 50-period moving average, which is playing a support role and maintains the upside bias. The relative strength index is mixed with a bullish bias. Even though a continuation of the consolidation cannot be ruled out, its extent should be limited.
To sum up, above 146.15, look for a further upside to 147.35 and even to 147.60 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 147.35 and the second one at 147.60. In the alternative scenario, short positions are recommended with the first target at 145.70 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 145.35. The pivot point is at 146.15.
Resistance levels: 147.35, 147.60, and 148.40
Support levels: 145.70,145.35, and 144.65
The material has been provided by InstaForex Company - www.instaforex.com