GBP/JPY is expected to prevail its upside movement. The pair broke above a declining trend line, which emerged on Sep 2, and is holding on the upside. The upward momentum is further reinforced by its ascending 20-period and 50-period moving averages, which act as support roles and maintain the upside bias. The relative strength index is above its neutrality level at 50 and lacks downward momentum. As long as 135.00 is support, look for a further upside toward 136.85 and 137.35 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 136.85 and the second one at 137.35. In the alternative scenario, short positions are recommended with the first target at 134.50 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 134.50. The pivot point is at 135.00.
Resistance levels: 136.85, 137.35, 138.35
Support levels: 134.50, 133.75, 133.00
The material has been provided by InstaForex Company - www.instaforex.comFrom www.instaforex.com http://ift.tt/2cHdJYF
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