GBP/JPY is expected to trade with a bullish bias. The pair stands firmly above its rising 20-period and 50-period moving averages. The relative strength index holds above its neutrality level at 50. Additionally, 118.45 represents a significant key support level, which should limit the downside potential. As long as this threshold is not broken, look for further advance toward 142.40 and even to 143.25 as possible.
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 142.40 and the second one at 143.25. In the alternative scenario, short positions are recommended with the first target at 138.70, 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 137.25. The pivot point lies at 139.60.
Resistance levels: 142.40, 143.25, 144.10
Support levels: 138.70, 137.25, 136.25
The material has been provided by InstaForex Company - www.instaforex.com