12.10.201515:56 Forex Analysis & Reviews: Technical analysis of GBP/JPY for October 12, 2015

GBP/JPY is expected to advance further. The pair broke above its previous resistance at 183.85 (which should act as the key support now), and accelerated on the upside. Furthermore, the ascending 20-period and 50-period MAs maintains the upside bias. The intraday RSI is above its neutrality level of 50 and lacks downward momentum. As long as 183.85 holds on the downside, look for further moving upside to 184.85 and even 185.40.

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. As long as the price holds above its pivot point, long positions are recommended with the first target at 184.85 and the second target at 185.40. In the alternative scenario, short positions are recommended with the first target at 183.30 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 182.70. The pivot point is at 183.85.

Resistance levels: 184.85 185.40 186

Support levels: 183.30 183.70 182.70