GBP/JPY is expected to trade in a higher range. The pair is heading upwards after the validation of an intraday "V" bottom pattern. The upside potential has been opened to at least 161. Besides, the relative strength index is still positive, without showing any reversal signals. In these perspectives, as long as 157.50 is not broken, look for further advance to 160.35 and 161 in extension.
Trading Recommendations:
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 160.35 and the second one at 161. In the alternative scenario, short positions are recommended with the first target at 156.30 if the price moves below its pivot points. A break of this target is likely to push the pair further downwards, and one may expect the second target at 155.70. The pivot point is at 157.50.
Resistance levels: 160.35, 161, 161.70
Support levels: 156.30, 155.70, 154.70
The material has been provided by InstaForex Company - www.instaforex.com