GBP/JPY is expected to continue its uptrend. The pair has accelerated to the upside after breaking above its previous resistance at 193.70, which should play a key support role now. Both rising 20- and 50-period intraday MAs maintain a bullish bias. And the intraday RSI is well directed. Further upside is therefore expected with the next horizontal resistance and overlap set 195.40 at first. A break above this level would call for further advance toward 195.90. Only a break below the horizontal support at 193.70 would open the way to further weakness.
The daily chart is still positive-biased as the MACD and stochastics are in a bullish mode.
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 195.40 and the second target at 195.90. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 193.30. A break of this target would push the pair further downwards, and one may expect the second target at 192.70. The pivot point is at 193.70.
Resistance levels: 195.40 195.90 196.70
Support levels: 193.30 192.70 192
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