GBP/JPY is expected to trade with a bullish bias. The pair posted strong rebound yesterday following the break above its key resistance at 183.25 (the upper boundary of its previous trading range). The upside room has been opened towards 184.85. Besides, the rising 20-period and 50-period MAs also confirmed a positive outlook. The intraday RSI shifted to bullish. In that case, as long as 183.25 is not broken, watch for further advance to 184.85 and 185.40.
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 184.85 and the second target at 185.40. In the alternative scenario, short positions are recommended with the first target at 182.70 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 182. The pivot point is at 183.25.
Resistance levels: 184.85 185.40 186
Support levels: 182.70 182 181.30
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