GBP/JPY is expected to trade with bullish bias above 136.80. Despite the recent consolidations, the pair still holds above its nearest support at 136.80, which should limit any downward attempts. The relative strength index is mixed below its neutrality area at 50, but lacks strong downward momentum. Though a continuation of the consolidation cannot be ruled out, its extent should be limited. To sum up, as long as 136.80 is not broken, look for further advance to 138.50. A break above this level would open the way to a further upside toward the next resistance at 139.55.
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 138.50 and the second one at 139.55. In the alternative scenario, short positions are recommended with the first target at 135.90 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 135.35. The pivot point is at 136.80.
Resistance levels: 138.50, 139.55, 140.75
Support levels: 135.90, 135.35, 134.25
The material has been provided by InstaForex Company – www.instaforex.com
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