GBP/JPY is expected to trade with bullish bias above 1.2360. The pair is trading around its 20-period and 50-period moving averages, which are flat and do not show any clear directions. The relative strength index is around its neutrality level. Nevertheless, 130.30 represents a significant key support level, which should limit the downside potential. As long as this key level is not broken, look for a technical rebound toward 132.45. A break above this level would call for a further upside toward 133.30.
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 132.45 and the second one at 133.30. In the alternative scenario, short positions are recommended with the first target at 129.25 if the price moves below its pivot point. A break of this target is likely to push the pair further downwards, and one may expect the second target at 127.85. The pivot point lies at 130.30.
Resistance levels: 132.45, 133.30, 134
Support levels: 129.25, 127.55, 126.45
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