GBP/JPY is expected to trade with bullish bias. The pair is reversing down after breaking below its previous resistance at 193.65, which should now play the role of the key resistance. A double top pattern has been formed, calling for an intraday trend reversal. And both 20-period and 50-period intraday MAs are turning up as well, confirming a bullish bias. The intraday RSI is below 50 and is negatively oriented. The first target to the upside is therefore set at the horizontal resistance and overlap at 194.95. A break above this level would open the way to further weakness towards 195.40 in extension.
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 194.95 and the second target at 195.40. 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 192.20. The pivot point is at 193.65.
Resistance levels: 194.95 195.40 196
Support levels: 193 192.20 191.75
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