GBP/JPY is expected to trade with bullish bias above 119.30. The pair is posting a rebound on its horizontal support at 140.35, and is expected to post further bounces. The 20-period moving average is currently turning up, and a cross above the 50-period moving average will be a bullish signal and will open the room for further upside. Meanwhile, the relative strength index is around its neutrality area at 50 and lacks downward momentum. As long as the level of 140.35 is not broken down, further bounce is preferred with 141.45 and 142.00 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 141.45 and the second one at 142.00. In the alternative scenario, short positions are recommended with the first target at 139.90, 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 139.45. The pivot point is at 140.35.
Resistance levels: 141.45, 142.00, 142.75
Support levels: 139.90,139.45, 139.00
