GBP/JPY is expected to trade with bullish bias. The pair has crossed above its 20-period moving average, which stays above its 50-period moving average. Meanwhile, the relative strength index is above 50 and is positively oriented. The pair has broken above an ascending triangle pattern, and is expected to look for a higher top. Meanwhile, the relative strength index is above 50 and lacks downward momentum. Trading of the British pound got tricky amid thin liquidity and stretched positions built against the currency.
As long as 137.25 is not broken down, further bounce is preferred with 139 and 140.05 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 139.00 and the second one at 140.05. In the alternative scenario, short positions are recommended with the first target at 136.25 if the price moves below its pivot point. A break of this target is likely to push the pair further downwards, and one may expect the second target at 135.45. The pivot point lies at 137.25.
Resistance levels: 139.00, 140.05, 141.10
Support levels: 136.25, 135.45, 134.60
