GBP/JPY is expected to trade in a lower range. The pair stays below its key resistance at 188.45 and remains under pressure. The descending 50-period intraday MA keeps a bearish bias. The intraday RSI stays below 50 lacking upward momentum. The first target to the downside is therefore set at the horizontal support and overlaps at yesterday's low at 186.25. A break below this level would open the way to further weakness towards the low of 184.90 hit on August 24. Only a break above the key resistance at 188.45 would call for further upside towards yesterday's high at 190 first.
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 168.25. A break of that target will move the pair further downwards to 184.90. The pivot point stands at 188.45. 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 upside. According to that scenario, long positions are recommended with the first target at 190.02 and the second target at 191.10.
Resistance levels: 190.02 191.10 192.10
Support levels: 186.25 184.90 184
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