Technical Analysis of GBP/JPY for May 10, 2016
GBP/JPY is expected to trade in a higher range as the bias remains bullish. The pair stays above the horizontal support at 155.35 and is continuing its rebound. Meanwhile, the relative strength index still stays above 50. As long as 155.35 is not broken down, further upside is expected with the next horizontal resistance and overlap set at 157.40 at first. A break above this level would call for further advance toward 158.45 in extension.
Trading Recommendations:
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 157.40 and the second one, at 158.40. In the alternative scenario, short positions are recommended with the first target at 154.35 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 153.60. The pivot point is at 155.35.
Resistance levels:157.40, 158.45, 159.30
Support levels: 154.35, 153.60, 152.75
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