GBP/JPY is expected to trade in a higher range. The pair is turning up and stands above its key support at 156.75. Both rising 20-period and 50-period moving averages maintain a positive bias. Meanwhile, the relative strength index is well directed. Further upside is therefore expected with the next horizontal resistance and overlap set at 159.05. A breakout above this level would call for further advance toward 160.35 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. Therefore, long positions are recommended with the first target at 159.05 and the second one at 160.35. In the alternative scenario, short positions are recommended with the first target at 155.70 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 154.70. The pivot point is at 156.75.
Resistance levels: 159.05, 160.35, 161.20
Support levels: 155.70, 154.70, 153.15
The material has been provided by InstaForex Company - www.instaforex.com