GBP/JPY intraday is expected to rebound. The pair stays above its key support at 187.30 and remains on the upside. Both rising 20- and 50-period intraday MAs should now play support roles. And the intraday RSI is above 50 and lacks downward momentum. Further upside is therefore expected with the next horizontal resistance and overlap set at 191.10 at first. A break above this level would call for a further advance toward 192.10 in extension. Only a break below the horizontal support at 187.30 would open the way to further weakness towards yesterday's low at 186.25 at first.
The pair is trading above its pivot point. It is likely to trade in a wider range as long as it remains above its pivot point. As long as the price holds above its pivot point, long positions are recommended with the first target at 191.10 and the second target at 192.10. In the alternative scenario, short positions are recommended with the first target at 186.25 if the price moves below its pivot points. A break of this target is likely to push the pair further downwards, and one may expect the second target at 184.90. The pivot point is at 187.30.
Resistance levels: 191.10 192.10 193
Support levels: 186.25 184.90 184
The material has been provided by InstaForex Company – www.instaforex.com