GBP/JPY is expected to trade in a higher range as the pair is moving upside. The pair is well supported by its rising 20-period intraday MA, which stays above its 50-period. A double bottom pattern has been validated and calls for further upside. And the intraday RSI is positively oriented as well. Further upside movement is expected with the next horizontal resistance and overlap set at 188.45 at first. A break above this level would call for further advance towards a high of 189 reached on September 14. Only a break below the horizontal support at 186.60 would open the way to further weakness.
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 188.45 and the second target at 189. In the alternative scenario, short positions are recommended with the first target at 185.70 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 185.90. The pivot point is at 186.60.
Resistance levels: 188.45 189 189.95
Support levels: 185.70 184.90 184.10
The material has been provided by InstaForex Company – www.instaforex.com