GBP/JPY is turning up and expected to trade in a higher range. The pair has crossed above its 20-period and 50-period intraday MAs and is reversing up. The intraday RSI is above its 50% neutrality area and is well-directed. Further upside is expected with the next horizontal resistance and overlap set at the horizontal support and overlap at 185.70 first. A break above this level would call for further advance toward 186.20 in extension. Only a break below the horizontal support at 183.30 would open the way to further weakness toward Sept. 4's low at 182.55 at first.
Trading recommendations:
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. As long as the price holds above its pivot point, long positions are recommended with the first target at 185.70 and the second target at 186.20. In the alternative scenario, short positions are recommended with the first target at 182.55 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 181.65. The pivot point is at 183.30.
Resistance levels: 185.70 186.20 187
Support levels: 182.55 181.65 181.15
The material has been provided by InstaForex Company - www.instaforex.com