GBP/JPY is expected to trade in higher range. The pair resumed its up trend after the recent bullish breakout of its key level at 139.50. The previous resistance now plays a strong support role, which should limit any downward attempts. In addition, the 50-period moving average is heading upward, and should continue to push the prices higher.
In these perspectives, as long as 139.50 holds on the downside, further advance seems to be on the cards to 140.38 and 141.20 in extension.
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 140.80 and the second one at 141.20. In the alternative scenario, short positions are recommended with the first target at 138.90, if the price moves below its pivot points. A break of this target may push the pair further downwards, and one may expect the second target at 138.50. The pivot point is at 139.50.
Resistance levels: 140.80, 141.20, and 142.00
Support levels: 138.90,138.50, and 138.00
