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11.07.201212:26 Forex Analysis & Reviews: AUD/USD Wave Analysis for July 11, 2012

Long-term review

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GBP/JPY is expected to trade with a bullish bias. The pair stays above its key support at 193. Both descending 20-period and 50-period intraday MAs act as resistance levels. And the intraday RSI is below 50 lacking upward momentum. The first upside target is set at the horizontal resistance and overlap at 194.60 (around the high of July 30). A break above this level would open the way to further strengthening towards 95.20.

Technical comment: The daily chart is negative-biased as the MACD and stochastics are bearish, five-day moving average is falling below 15-day moving average.

Trading recommendations:

The pair is trading above its pivot point. It is likely to trade in a higher range as far as it remains above its pivot point. As long as the price keeps above its pivot point, long positions are recommended with the first target at 194.60 and the second target at 195.20. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 192.45. A break of this target would push the pair further downwards, and one may expect the second target at 191.90. The pivot point is at 193.

Resistance levels: 194.60 195.20 196

Support levels: 192.45 191.90 191.35

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