TheGBP/JPY pair is supported by an ascending trend line (since Sept 21) in line with a positive outlook. Furthermore, the rising 20-period and 50-period MAs maintain an upside bias. In addition, the intraday RSI is above its neutrality level of 50 and lacks downward momentum. As long as 1841.80 holds on the downside, look for more room upside to 183.30 and even 183.85.
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. As long as the price holds above its pivot point, long positions are recommended with the first target at 183.30 and the second target at 183.85. In the alternative scenario, short positions are recommended with the first target at 181.30 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 180.80. The pivot point is at 181.80.
Resistance levels: 183.30 183.85 184.25
Support levels: 181.30 180.80 180.30
The material has been provided by InstaForex Company – www.instaforex.com