GBP/JPY is expected to trade with a bullish bias. The pair posted a rebound overnight after falling as low as 184.25. The 20-period moving average has moved above the 50-period one, while the relative strength index is staying above the neutrality level of 50 calling for further advance. The pair is therefore expected to reach the first upside target at 186 (around yesterday's high) before approaching the second one at 186.30 (a resistance seen on November 25).
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 and the second target at 186.30. In the alternative scenario, short positions are recommended with the first target at 184.25 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 183.85. The pivot point is at 184.80.
Resistance levels: 186 186.30 187
Support levels: 184.25 183.85 183