GBP/JPY is expected to trade in a higher range. The pair remains on the upside, backed by rising 20-period and 50-period moving averages , and is now challenging its nearest resistance at 155.10. At the same time, the relative strength index is bullish above its neutrality area at 50, and calls for further advance. To sum up, as long as 151.85 is not broken, expect a new bounce to 155.10 and 156.30 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. Therefore, long positions are recommended with the first target at 155.10 and the second one at 156.30. In the alternative scenario, short positions are recommended with the first target at 150.80 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 149.80. The pivot point is at 151.85.
Resistance levels: 155.10, 156.30, 157 Support levels: 150.80, 149.80, 148.10