GBP/JPY is expected to trade on the upside. The pair broke above its 20-period and 50-period moving averages, which play support roles and maintain the upside bias, and is holding upside. The relative strength index stands firmly above its neutrality level at 50 and lacks downward momentum. Additionally, 141.45 is playing a key support role, which should limit the downside potential. As long as this key level is not broken, look for a further upside to 142.65 and then to 143.10.
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 142.65 and the second one at 143.10. In the alternative scenario, short positions are recommended with the first target at 141.75, 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 140.50. The pivot point is at 141.75.
Resistance levels: 142.65, 143.10, and 143.75
Support levels: 141.35, 140.90 and 140.35
