GBP/JPY is expected to extend its upside movement. The pair has formed a round bottom, and is staying above its resistance at 140.85. Both rising 20-period and 50-period moving averages should play support roles, while the relative strength index is also positively oriented. As long as 140.85 is not broken down, a further bounce is preferred with 142.20 and 143.00 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 142.20 and the second one at 143.00. In the alternative scenario, short positions are recommended with the first target at 140.50 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 140.00. The pivot point is at 140.85.
Resistance levels: 142.20, 143.00, 143.75
Support levels: 140.50, 140, 139.15
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