GBP/JPY is expected to trade with bullish above 139.50. The pair managed to break above its 20-period and 50-period moving averages, and is likely to challenge its horizontal resistance at 119.50 in sight. The relative strength index is turning up now, and also broke above its neutrality level at 50.
In that case, as long as 139.50 holds on the downside, advance to 140.80 and 141.20 in extension is possible.
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
The material has been provided by InstaForex Company – www.instaforex.com