GBP/JPY is expected to trade with an upward bias. The pair managed to break above its resistance at 159.35, which now acts as a key support level. The rising 20-period and 50-period moving averages are well directed, and are also expected to push the prices higher. In addition, the relative strength index is bullish, without showing any reversal signals. Therefore, above 159.35, a new rebound is more likely to 161 and 162.25 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. Therefore, long positions are recommended with the first target at 161 and the second one at 162.25. In the alternative scenario, short positions are recommended with the first target at 158.60 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 157.50. The pivot point is at 159.30.
Resistance levels: 161, 162.24, 163
Support levels: 158.60, 157.50, 156.30
