GBP/JPY is expected to continue its upwards movement. The pair has recorded higher tops and higher bottoms since April 28, which confirmed a positive outlook. The upward momentum is further reinforced by the rising 20-period and 50-period moving averages. The relative strength index is supported by the ascending trend line.
Hence, as long as 143.80 holds on the downside, expect a further rise to 145 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