GBP/JPY is expected to trade with bullish bias. The pair stands above its key support at 168.30 and is supported by its 20-period moving average, which stays above the 50-period one. Meanwhile, the relative strength index lacks downward momentum. Further upside is therefore expected with the next horizontal resistance and overlap set at 170.30 at first. A break above this level would call for further advance toward 171.35 in extension.
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 167 and the second target at 166.05. In the alternative scenario, short positions are recommended with the first target at 170.35 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 171.35. The pivot point is at 168.30.
Resistance levels: 170.35, 171.35, 172
Support levels: 167, 166.05, 165.50
The material has been provided by InstaForex Company - www.instaforex.com