GBP/JPY is expected to trade with bullish bias above 138.65. The pair is rebounding on its 50-period moving average, as well as the horizontal support at 138.65. The 20-period moving average still stays above the 50-period one, and the relative strength index is around its neutrality area at 50 but lacks downward momentum. The intraday bias should remain positive.
As long as 138.65 is not broken down, further bounce is preferred with 139.65 and 140.00 as targets.
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 139.65 and the second one at 140.00. In the alternative scenario, short positions are recommended with the first target at 138.15, if the price moves below its pivot points. A break of this target may push the pair further downwards, and one may expect the second target at 137.00. The pivot point is at 138.65.
Resistance levels: 139.65, 140.00, and 140.80
Support levels: 138.15,137.80, and 137.00
The material has been provided by InstaForex Company - www.instaforex.com