GBP/JPY is expected to trade in a higher range. The pair is holding on the upside after it has broken above a bearish trend line. Meanwhile, the relative strength index is bullish above its neutrality area at 50 and calls for further advance. Both the 20-period and 50-period moving averages are heading upward and act as support. To sum up, as long as 139.90 holds on the downside, look for further rise to 142.45 and even 143.25 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 142.45 and the second one, at 43.25. In the alternative scenario, short positions are recommended with the first target at 39.30, 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 138.30. The pivot point is at 139.90.
Resistance levels: 142.45, 143.25, 144.15
Support levels: 139.30, 138.30, 136.40
The material has been provided by InstaForex Company - www.instaforex.com