GBP/JPY is expected to trade in a higher range as the bias remains bullish. The pair recorded a succession of higher tops and higher bottoms since Aug 30, which confirms a positive view. The upward momentum is further reinforced by its rising 50-period moving average, which acts as a support role and maintains the upside bias. The relative strength index is above its neutrality level at 50 and lacks downward momentum. As long as 136.80 holds on the downside, look for further upside toward 139.55 and 140.75 in extension.
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 139.55 and the second one at 140.75. In the alternative scenario, short positions are recommended with the first target at 135.90 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 135.35. The pivot point is at 136.80.
Resistance levels: 139.55, 140.75, 141.40
Support levels: 135.90, 135.35, 134.25
