GBP/JPY is expected to move upward. The technical picture of the pair remains positive above a bullish trend line, which emerged on May 19. The relative strength index stands firmly above its neutrality level at 50 and lacks downward momentum. In addition, 145.80 is playing a key support role, which should limit the downside potential.
As long as 144.60 holds on the downside, look for a further advance toward 145.80 and even 146.00 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 145.80 and the second one at 146.00. In the alternative scenario, the short position is recommended with the first target at 144.05 if the price moves below its pivot points. A break of this target may push the pair further downwards, and one may expect the second target at 143.75. The pivot point is at 144.60.
Resistance levels: 145.80, 146.30, and 147.00
Support levels: 144.05,143.75, and 143.00
The material has been provided by InstaForex Company - www.instaforex.com