GBP/JPY is expected to trade in a lower range. The pair has just broken below a declining trendline since August 14 and has also exceeded yesterday's low. A double bottom pattern has been validated, calling for an intraday trend reversal. Both rising 20- and 50-period intraday MAs maintain a bearish bias. And the intraday RSI is well directed. Further downside is expected with the next horizontal support and overlap set 193.20 at first. A break below this level would call for a further decline towards 192.65 in extension. Only a break above the horizontal resistance at 194.30 would open the way to further strength.
The pair is trading below its pivot point. It is likely to trade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 193.20. A break of that target will move the pair further downwards to 192.65. The pivot point stands at 194.30. In case the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to move further to the upside. According to that scenario, long positions are recommended with the first target at 195.30 and the second target at 195.90.
Resistance levels: 195.30 196.05 196.75
Support levels: 193.20 192.65 192
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