GBP/JPY is expected to trade mainly with a bullish bias. The pair has been supported by its rising 20-period moving average, and is looking for a higher top. Meanwhile, the 20-period moving average stays above the 50-period one, and the relative strength index is held up by a bullish trend line. As long as 141.50 is not broken down, further bounce is preferred with 144.50 and 145.20 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 144.50 and the second one at 145.20. In the alternative scenario, short positions are recommended with the first target at 140.00 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 139.25. The pivot point lies at 141.50.
Resistance levels: 144.50, 145.20, 146.05
Support levels: 140.00, 139.25, 138.50
