GBP/JPY is expected to extend its upside movement. The pair recorded a succession of higher tops and higher bottoms, which confirms a positive view. The rising 20-period and 50-period moving averages further reinforced the upward momentum. The relative strength index is above its neutrality level at 50. As long as 142.90 holds as key support, look for a further upside to 144.20 and even 144.65 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 144.20 and the second one at 144.65. In the alternative scenario, short positions are recommended with the first target at 142.40 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 141.85. The pivot point is at 142.90.
Resistance levels: 144.20, 144.65, 145.25
Support levels: 142.40, 141.35,140.65
The material has been provided by InstaForex Company - www.instaforex.com