GBP/JPY is expected to trade with a bullish bias. The pair remains in a rising trend channel, and is continuing its rebound. Both 20-period and 50-period moving averages should maintain a bullish bias. And the relative strength index has been supported by a rising trend line. As long as 141.80 is not broken down, a further bounce is preferred with 143.15 and 144.00 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 143.15 and the second one at 144.00. In the alternative scenario, short positions are recommended with the first target at 141.35 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 140.85. The pivot point is at 141.80.
Resistance levels: 143.15, 144.00, 144.75
Support levels: 141.35, 140.85,140.05
The material has been provided by InstaForex Company – www.instaforex.com
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