GBP/JPY is expected to continue its upside movement. The pair broke above its former key resistance at 137.25, which becomes support now, and accelerated on the upside. The upward momentum is further reinforced by its rising 20-period and 50-period moving averages. The relative strength index is above its neutrality level at 50 and lacks downward momentum. As long as 137.25 is support, look for a further upside toward 139.00 and even 140.05 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 139.00 and the second one at 140.05. In the alternative scenario, short positions are recommended with the first target at 136.25 if the price moves below its pivot point. A break of this target is likely to push the pair further downwards, and one may expect the second target at 135.45. The pivot point lies at 137.25.
Resistance levels: 139.00, 140.05, 141.10
Support levels: 136.25, 135.45, 134.60
The material has been provided by InstaForex Company - www.instaforex.com