GBP/JPY is expected to advance further. The pair has broken above a triangle pattern, and is looking for a higher top. Both 20-period and 50-period moving averages are rising and should play support roles as well. In addition, the relative strength index is above its neutrality area at 50, showing upside momentum. Even though an intraday consolidation cannot be ruled out, its extent should be limited.
As long as 144.55 is not broken below, expect a break above 145.50 at first, which will allow for an upside acceleration to 146 as likely.
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
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