GBP/JPY is expected to trade with bullish bias. The pair broke below its 20-period and 50-period moving averages with a bearish gap. The relative strength index is below its neutrality level at 50 and is heading downwards. However, 128.80 is playing a key support role. As long as the key level at 128.80 is not broken, we keep our positive view unchanged with up target at 130.55 first.
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 130.55 and the second one at 131.60. In the alternative scenario, short positions are recommended with the first target at 127.95, 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 127.55. The pivot point lies at 128.80.
Resistance levels: 130.55, 131.00, 132
Support levels: 127.95, 127.55, 126.80
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