GBP/JPY is expected to trade with a bullish bias. The pair managed to hold above its horizontal level at 160.05, and is now challenging its next resistance at 161.70. A bullish breakout of this threshold seems more likely to occur, as the 20-period moving average is reversing up, and has also crossed above the 50-period one. The relative strength index is now above its neutrality area at 50. In these perspectives, as long as 160.05 is not broken, look for further advance to 161.70 and 162.55 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 161.70 and the second one, at 162.55. In the alternative scenario, short positions are recommended with the first target at 159.45 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 158.30. The pivot point is at 160.05.
Resistance levels: 161.70, 162.55, 163.35
Support levels: 159.45, 158.30, 157.05
The material has been provided by InstaForex Company - www.instaforex.com