GBP/JPY is expected to trade in a higher range as the bias remains bullish. The pair has been supported by the rising 50-period moving average and remains on the upside. The 20-period moving average stays above the 50-period one, and the relative strength index lacks downward momentum. As long as 143.80 is not broken down, a further bounce is preferred with 144.95 and 145.40 as targets.
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 144.95 and the second one at 144.40. In the alternative scenario, short positions are recommended with the first target at 143.50 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 142.95. The pivot point is at 143.80.
Resistance levels: 144.95, 145.40, 145.80
Support levels: 143.50, 142.95,142.35
The material has been provided by InstaForex Company - www.instaforex.com