GBP/JPY is expected to extend its upside movement. The pair posted a rebound and broke above the 20-period and 50-period moving averages, which play support roles and maintain the bullish bias. The relative strength index has just landed on its neutrality level at 50 and is turning up.
Therefore, as long as 144.55 holds on the downside, look for a further rise to 145.50 and even to 146.00 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 145.50 and the second one at 146.00. In the alternative scenario, short positions are recommended with the first target at 144.05 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 143.70. The pivot point is at 144.55.
Resistance levels: 145.050, 146.00, and 146.35
Support levels: 144.05,143.70, and 143.20
The material has been provided by InstaForex Company – www.instaforex.com