GBP/JPY is expected to trade with bullish bias above 133.40. The pair is posting a consolidation but stays above its horizontal support at 133.40. And the relative strength index lacks downward momentum. Even though a continuation of the consolidation in current stage cannot be ruled out, its extent should be limited. As long as 1.3505 is not broken below, further bounce is expected with 136.60 and 137.40 as the next 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 136.60 and the second one at 137.40. In the alternative scenario, short positions are recommended with the first target at 132.45 if the price moves below its pivot point. A break of this target is likely to push the pair further downwards, and one may expect the second target at 131.65. The pivot point lies at 133.40.
Resistance levels: 136.60, 137.40, 138.20
Support levels: 132.45, 131.65, 130.30
The material has been provided by InstaForex Company – www.instaforex.com
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