GBP/JPY is expected to trade in bullish bias. The pair broke below its 20-period moving average but is still trading above the 50-period one. Even though a continuation of the consolidation cannot be ruled out, its extent should be limited. As long as support is at 129.75, look for a technical rebound towards 131.50. A break above this level would call for further advance towards 132.60.
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 131.50 and the second one, at 132.60. In the alternative scenario, short positions are recommended with the first target at 128.75 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 127. The pivot point is at 129.75.
Resistance levels: 131.50, 132.60 , 134.15
Support levels: 128.75 , 127.00 , 126.15
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