GBP/JPY is expected to trade in a higher range. The pair has crossed above both 20-period and 50-period moving average, and is continuing its rebound. The immediate trend is upward and the momentum is strong. The bias remains bullish and further bounce is expected with the next target set at 163.10 and 164.10 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 163.10 and the second one, at 164.10. In the alternative scenario, short positions are recommended with the first target at 160.40 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 160. The pivot point is at 161.35.
Resistance levels: 163.10, 164.10, 165
Support levels:160.70, 160, 159
