GBP/JPY is expected to trade with a bullish bias above 137.50. The pair stands firmly above its key support at 137.50, which should allow for a temporary stabilisation. The relative strength index jumped above its descending trend line, confirming a positive outlook. Even though a continuation of the consolidation cannot be ruled out at the current stage, its extent should be limited.

As long as 137.50 is not broken, likely advance to 138.35 and 138.70 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 138.35 and the second one at 138.70. In the alternative scenario, short positions are recommended with the first target at 137.25, if the price moves below its pivot points. A break of this target may push the pair further downwards, and one may expect the second target at 136.85. The pivot point is at 137.50.

Resistance levels: 138.35, 138.70, and 139.45

Support levels: 137.25,136.85, and 136.15

The material has been provided by InstaForex Company –