GBP/JPY is expected to trade with a bullish bias. The pair, which is trading around the 20-period (30-minute chart) moving average, is retesting the first upside target at 161.85. The relative strength index remains above the neutrality level of 50 lacking downward momentum. As long as the bullish bias persists, the pair is expected to cross above 161.85 before proceeding toward the next resistance at 162.85.
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. Therefore, long positions are recommended with the first target at 161.85 and the second one at 162.85. In the alternative scenario, a short position is recommended with the first target at 159 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 157.75. The pivot point is at 159.95.
Resistance levels: 161.85, 162.85, 163.40
Support levels: 159.00, 157.75, 156.90