GBP/JPY is expected to trade with a bullish bias. The technical picture of the pair remains positive. The pair broke above its 20-period and 50-period moving averages and maintains on the upside. The upward momentum is further reinforced by its rising 20-period and 50-period moving averages, which act as support and maintain the upside bias. The relative strength index is above its neutrality level at 50 and lacks downward momentum. Additionally, 11134.40 represents a significant key support level, which should limit the downside potential. As long as this key level is not broken, look for a further upside toward 135.80 and 136.30 in extension.
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 135.80 and the second one, at 136.30. In the alternative scenario, short positions are recommended with the first target at 133.90 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 133.30. The pivot point is at 134.40.
Resistance levels: 135.80, 136.30, 137.35
Support levels: 133.90, 133.30, 132.35
The material has been provided by InstaForex Company - www.instaforex.com