GBP/JPY is expected to continue its upside movement. The technical outlook of the pair is positive as the prices are supported by a bullish trend line since May 1. The rising 20-period and 50-period moving averages suggest that the pair has the potential for a further advance. The relative strength index is mixed to bullish.
Hence, as long as 144.55 holds on the downside, expect a new challenge to 145.50 and even to 146.00 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 145.50 and the second one at 146.00. In the alternative scenario, short positions are recommended with the first target at 144.05 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 143.70. The pivot point is at 144.55.
Resistance levels: 145.05, 146.00, and 146.35
Support levels: 144.05,143.70, and 143.20
The material has been provided by InstaForex Company - www.instaforex.com