GBP/JPY is expected to trade in a higher range as the bias remains bullish. The pair stands above the short-term rising trend line since April 11 and is also supported by its 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 156.70 at first. A break above this level would call for further advance toward 158.05 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 156.70 and the second one, at 158.05. In the alternative scenario, short positions are recommended with the first target at 153.45 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 152.60. The pivot point is at 153.95.
Resistance levels: 156.70, 157.15, 158
Support levels: 153.45, 152.60, 152
