GBP/JPY is expected to trade in a higher range. The pair has crossed above its 20-period and 50-period intraday MAs and remains on the upside. Both MAs are acting as support levels. The intraday RSI stays above 50 and is positively oriented. Further upside is therefore expected with the next horizontal resistance and overlap set at 195.30 firstly. A break above this level would call for further advance towards 195.70.
Technical comment:
Daily chart is positive-biased as The MACD and stochastics are bullish, although latter is in the overbought zone; five-day moving average is above 15-day MA and is advancing.
Trading recommendations:
The pair is trading above its pivot point. It is likely to trade in a higher range as far as it remains above its pivot point. As long as the price keeps above its pivot point, long positions are recommended with the first target at 195.30 and the second target at 195.70. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 194.10. A break of this target would push the pair further downwards, and one may expect the second target at 193.60. The pivot point is at 194.50.
Resistance levels: 195.30 195.70 196.30
Support levels: 194.10 193.60 193
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