GBP/JPY is expected to trade with bullish bias. The pair has reversed up and is well supported by its rising 50-period intraday MA. The 20-period MA has crossed above the 50-period one, confirming a bullish bias. And the intraday RSI lacks downward momentum. Further upside is expected with the first upside target set at 185.30; and the second one, at 185.80 in extension. Only a break below the key support at 183.60 would open the way to further weakness.
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 185.30 and the second target at 185.80. In the alternative scenario, short positions are recommended with the first target at 182.75 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 182.30. The pivot point is at 183.60.
Resistance levels: 185.30 185.80 189.65
Support levels: 182.75 182.30 181.60
The material has been provided by InstaForex Company – www.instaforex.com