GBP/JPY is expected to trade in a higher range. After a choppy trading session last Friday, the pair is currently taking a breath and moving sideways above its key support at 192.50. Both 20- and 50-period intraday MAs are providing support now. And the intraday RSI stays above 50. Further upside is therefore expected with the next horizontal resistance and overlap set at the high of August 7 at 193.75 at first. A break above this level would call for a further advance toward 194.25 as possible. Only a break below the horizontal support at 195.50 would open the way to further weakness toward the low of August 7 at 191.95 at first.
Daily chart is positive-biased as the MACD and stochastics are bullish.
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 193.75 and the second target at 194.25. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 191.95. A break of this target would push the pair further downwards, and one may expect the second target at 191.45. The pivot point is at 192.50.
Resistance levels: 193.75 194.25 195
Support levels: 191.95 191.45 190.75
The material has been provided by InstaForex Company – www.instaforex.com