GBP/JPY is expected to trade with bullish bias as the bias remains positive. The pair rebounded sharply from 184 and is forming a bullish flag pattern now (not yet confirmed). The intraday RSI also rebounded from its overbought area and is around its neutrality level at 50 now. A support base has formed at 184, which should limit the downside potential. Above this level, the pair is likely to continue moving upside and challenge the previous top at 185.30. A break above this level would call for a further upside to 185.65.
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 185.30 and the second target at 185.65. In the alternative scenario, short positions are recommended with the first target at 183.60 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 183. The pivot point is at 184.
Resistance levels: 185.30 185.65 186
Support levels: 183.60 183 182.35
The material has been provided by InstaForex Company - www.instaforex.com