GBP/JPY is expected to keep momentum. The pair is trading above its rising 50-period moving average, which acts as support and maintains the upside bias. The relative strength index is above its neutrality level at 50. Additionally, a support base has been formed around 134.85, which should limit the downside potential. Above 134.85, look for a further upside toward 115.60 and even 136.30 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 136.30 and the second one at 136.70. In the alternative scenario, short positions are recommended with the first target at 133.90 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 133.90. The pivot point is at 134.85.
Resistance levels: 136.30, 136.70, 137.35
Support levels: 134.40, 133.90, 133.30
The material has been provided by InstaForex Company – www.instaforex.com