GBP/JPY is expected to trade in higher range and continue its rebound. The pair has broken above its negative trend line, as well as both 20-period and 50-period moving average, and is expected to continue its technical rebound. Meanwhile, the 20-period moving average stays above the 50-period one, and the relative strength index remains above its neutrality area at 50. The intraday bias remains positive.
As long as 136.60 is not broken down, further bounce is preferred with 136.30 and 135.95 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 137.75 and the second one at 138.35. In the alternative scenario, short positions are recommended with the first target at 136.30 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 135.95. The pivot point is at 136.60.
Resistance levels: 137.75, 138.35, and 138.75
Support levels: 136.30,135.95, and 135.25
The material has been provided by InstaForex Company - www.instaforex.com