GBP/JPY is expected to trade with bullish bias. The pair is well supported by its rising 20-period moving average, which stays above the 50-period one. Meanwhile, the relative strength index lacks downward momentum. Further upside is therefore expected with the next horizontal resistance and overlap set at 71.35 at first. A break above this level would call for further advance towards 172.20 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 171.35 and the second target at 172.20. In the alternative scenario, short positions are recommended with the first target at 168.05 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 167. The pivot point is at 168.80.
Resistance levels: 171.35, 172, 172.30
Support levels: 168.05, 167, 166.05
