Technical Analysis of GBP/JPY for May 11, 2016
GBP/JPY is expected to post further gains. The pair has been supported by its rising 20-period and 50-period moving averages and is looking for a higher top. Meanwhile, the relative strength index still stays above 50. As long as 123.20 is not broken down, further upside is expected with the next horizontal resistance and overlap set at 158.45 at first. A break above this level would call for further advance toward 159.50 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 158.45 and the second one, at 159.50. In the alternative scenario, short positions are recommended with the first target at 155.90 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 155.90. The pivot point is at 156.45.
Resistance levels: 158.45, 159.50, 160.25
Support levels: 155.90, 155.35, 154.35