GBP/JPY is expected to trade with bullish bias as Key support is at 131.55. The technical picture of EUR/JPY remains positive above its key support level at 131.55, which should limit the downside potential. The pair just broke above its 20-period moving average and is going to challenge the 50-period one in sight. Additionally, the relative strength index is rebounding and is likely to cross above its neutrality level at 50. As long as the key support at 131.55 holds on the downside, look for a technical rebound toward 113.65. A break above this level would call for further advance toward 132.55.
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 132.55 and the second one, at 133.20. In the alternative scenario, short positions are recommended with the first target at 130.90 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 130.25. The pivot point is at 131.55.
Resistance levels: 132.55, 133.20, 134.60
Support levels: 130.90, 130.25, 129.20
