GBP/JPY is expected to post some limited gains. The pair has been supported by a bullish trend line since December 20. The relative strength index has been backed by an ascending trend line since December 19 and is heading upward without any reversal signal. Therefore, as long as 144.90 is not broken below, the pair is expected to post further rebound to challenge 145.70 at first and then 146.05.
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 145.70 and the second one at 146.05. In the alternative scenario, short positions are recommended with the first target at 144.50 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 144.15. The pivot point lies at 144.90.
Resistance levels: 145.70, 146.05, 147.00
Support levels: 144.50, 144.15, 143.55
