GBP/JPY is expected to trade with bullish bias. The pair is turning up and is expected to post further rebound. The upside momentum is further reinforced by its rising 20-period and 50-period moving averages, which act as support roles and maintain the upside bias. The relative strength index is bullish above its 50% level and shows upside momentum and lacks downward momentum. Thus, further bounce is expected with 140.15 and 141.10 as targets.
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 140.15 and the second one, at 141.10. In the alternative scenario, short positions are recommended with the first target at 137.20 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 136.60. The pivot point is at 137.85.
Resistance levels: 140.15, 141.25, 142.40
Support levels: 137.20, 136.60, 135.90
