GBP/JPY is expected to trade with a bullish bias above 172.50. The pair stands above its key support at 172.50 and is currently supported by its rising 50-period moving average. Meanwhile, the relative strength index lacks downward momentum. Further upside is therefore expected with the next horizontal resistance and overlap set at 175 at first. A breakout above this level would call for further advance toward 176.20 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 175 and the second target at 176.20. In the alternative scenario, short positions are recommended with the first target at 171.20 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 170. The pivot point is at 172.50.
Resistance levels: 175, 176.20, 177
Support levels: 171.20, 170, 169.40
