GBP/JPY is expected to trade in a higher range as bias remains bullish. The pair stands above its key support at 167.80 and remains on the upside. The 20-period moving average stays above its 50-period one, while the relative strength index lacks downward momentum. Further upside is therefore expected with the next horizontal resistance and overlap set at 170.60 at first. A break above this level would call for further advance towards 171.40 in extension.
Trading Recommendations:
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 170.60 and the second target at 171.40. In the alternative scenario, short positions are recommended with the first target at 166.80 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 166.15. The pivot point is at 167.80.
Resistance levels: 170.60, 171.40, 172
Support levels: 166.80, 166.15, 165.50
