GBP/JPY is expected to trade with a bullish bias. The pair is holding above its being support at 185.50 and is supported by its 50-period intraday MA. Even though a continuation of the consolidation cannot be ruled out, its extent should be limited. A further upside is therefore expected with the next horizontal resistance and overlap set at 186.75 at first. A break above this level would call for a further advance towards 187.30 in extension.
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 186.75 and the second target at 187.30. In the alternative scenario, short positions are recommended with the first target at 185 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 184.60. The pivot point is at 185.50.
Resistance levels: 186.75 187.30 188.05
Support levels: 185 184.60 184.00