GBP/JPY is expected to trade in a higher range as the bias remains bullish. As global stock markets gained ground along with an improvement in risk sentiment, government bonds in the US and Europe experienced a selloff. European stocks were also positive, with the Stoxx Europe 600 rising 1.1%.
The pair remains on the upside and is supported by the 20-period moving average. The rising 50-period moving average also maintains a bullish bias. Further bounce is expected with 140.10 and 141.00 as targets.
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 140.10 and the second one, at 141.00. In the alternative scenario, short positions are recommended with the first target at 134.85 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 133.70. The pivot point is at 136.10.
Resistance levels: 140.10, 141.00, 142
Support levels: 134.85, 133.70, 133.00
The material has been provided by InstaForex Company - www.instaforex.com