GBP/JPY is expected to trade in higher range as the bias remains bullish. The pair remains on the upside within a bullish channel, which emerged on August 22. At the same time, the 50-period moving average is heading upward, and acts as a support role. Besides, the relative strength index lacks downward momentum. To sum up, as long as 132.40 holds on the downside, look for further advance to 133.30 and then to 133.70 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 133.70 and the second one, at 133.70. In the alternative scenario, short positions are recommended with the first target at 131.90 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 130.25. The pivot point is at 132.40.
Resistance levels: 133.30, 133.70, 134.60
Support levels: 131.90, 131.55, 130.90
The material has been provided by InstaForex Company – www.instaforex.com
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