GBP/JPY is expected to trade with a bullish bias. The pair is reversing down after an intraday spike on the upside. A 20-period intraday declining MA should play a role of resistance now. The intraday RSI is above 50 and is well directed .A break above the key resistance at 194.60 would call for further upside towards a high of 195.20 hit on July 29. The first target is set at the horizontal support and overlaped at 193.15. A break below this level would open the way to further weakness towards a low of 192.45 and then to 191.90.
Technical comment: RSI is above 50 and is well directed.
The pair is trading above its pivot point. It is likely to trade in a higher range as far as it remains above its pivot point. As long as the price keeps above its pivot point, long positions are recommended with the first target at 194.60 and the second target at 195.20. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 192.45. A break of this target would push the pair further downwards, and one may expect the second target at 191.90. The pivot point is at 193.15.
Resistance levels: 194.60 195.20 196
Support levels: 192.45 191.90 191.35
The material has been provided by InstaForex Company – www.instaforex.com