GBP/JPY is expected to trade with bullish bias. The pair has broken its previous high, and is expected to look for a higher up in the forthcoming sessions. Both descending 20-period and 50-period intraday MAs are playing resistance roles now. The intraday RSI is badly directed and has broken down its 30 level. The first target to the upside is set at the horizontal resistance and overlap at 194.60. A break above this level would open the way to further strength towards 195.20.
The daily chart is positive-biased as bullish outside-day-range pattern was completed on Monday. Stochastic is bullish, the MACD histogram bars are turning positive, and 5-day moving average is above 15-day moving average and is advancing.
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 193. A break of this target would push the pair further downwards, and one may expect the second target at 192.45. The pivot point is at 193.60.
Resistance levels: 194.60 195.20 196
Support levels: 193 192.45 191.90
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