FX.co ★ Technical analysis of GBP/JPY for August 31, 2015

GBP/JPY is expected to trade with a bulish bias above 185.35. The pair stands above its key support at 185.35 and is expected to post a rebound in the sessions to come. The intraday RSI has just landed on the neutrality level of 50 and is turning up, calling for a bounce as well. Further upside is therefore expected with the next horizontal resistance and overlap set on a high of 188.15 previously reached on August 28. A break above this level would call for further advance towards the high of 188.70 in extension. Only a break below the horizontal support at 185.35 would open the way to further weakness.

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 188.15 and the second target at 188.70. In the alternative scenario, short positions are recommended with the first target at 184.10 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 183.15. The pivot point is seen at 185.35.

Resistance levels: 188.15 188.70 189.45

Support levels: 184.10 183.15 182.75