GBP/JPY is expected to trade with a bullish bias. The technical picture of EUR/JPY is positive. The pair is trading above its rising 20-period and 50-period moving averages, which acts as support roles and maintain the upside bias. The relative strength index is bullish above its neutrality level at 50 and calls for a further upside. As long as 132.80 holds on the downside, look for a further upside toward 134.50 and even 135.25 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 134.50 and the second one, at 135.25. In the alternative scenario, short positions are recommended with the first target at 132.35 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 131.90. The pivot point is at 132.80.
Resistance levels: 134.50, 135.25, 136.15
Support levels: 132.35, 131.90, 131.25
The material has been provided by InstaForex Company – www.instaforex.com