GBP/JPY is expected to trade in a higher range. The pair remains bullish above 160.50, representing a key horizontal level. The rising 50-period moving average plays a support role well. Moreover, the relative strength index stands firmly above its neutrality area at 50, which should confirm a positive outlook. Hence, as long as 160.50 is not broken, a new rise seems to be on the cards to 162.45 and 163.20 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 162.45 and the second one at 163.20. In the alternative scenario, short positions are recommended with the first target at 159.35 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 158.60. The pivot point is at 160.50.
Resistance levels: 162.45, 163.20, 164
Support levels: 159.35, 158.60, 157.50
The material has been provided by InstaForex Company - www.instaforex.com