Technical Analysis of GBP/JPY for May 19, 2016
GBP/JPY is expected to trade in a higher range as the bias remains bullish. Currently trading at 160.65, the pair stands above its support at 159, while the 20-period moving average stays above the 50-period one. Even though a continuation of the consolidation cannot be ruled out, its extent should be limited. The bias remains bullish, and a further bounce is expected with the next targets set at 161.65 and 162.70.
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 161.65 and the second one, at 162.70. In the alternative scenario, short positions are recommended with the first target at 158.30 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 157.25. The pivot point is at 159.
Resistance levels: 161.65, 162.70, 163.50
Support levels: 158.30, 157.25, 156.70