GBP/JPY is expected to trade with a bullish bias. The pair has bounced up from another test of support at 130.00, which should limit the downside attempts. The rising 20-moving average just crossed above the 50-period one, which is a bullish signal. The relative strength index is above its neutrality level at 50 and lacks downward momentum. As long as 130 is support, further advance is expected with the horizontal resistance at 132.50. A break above this level would open the way to further upside toward the next resistance at 133.20.
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 132.50 and the second one, at 133.20. In the alternative scenario, short positions are recommended with the first target at 129.20 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 128.60. The pivot point is at 130.
Resistance levels: 132.50, 133.20 , 134.60
Support levels: 129.20, 128.60
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