GBP/JPY is expected to trade with bullish bias. The pair is currently testing its nearest support at 156.20, while the relative strength index lacks downward momentum. As long as 156.20 is not broken down, further upside is expected with the next horizontal resistance and overlap set at 159 at first. A break above this level would call for further advance towards 159.60 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 159 and the second one, at 159.60. In the alternative scenario, short positions are recommended with the first target at 155.60 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 154.75. The pivot point is at 156.20.
Resistance levels: 159, 159.60, 160.15
Support levels: 155.60, 154.75, 154.05
