GBP/JPY is expected to trade in a lower range. The stalls below its key resistance at 187.25 and remains under pressure. The descending 50-period intraday MA maintains a bearish bias. And the intraday RSI lacks upward momentum.The first downside target is therefore set at the horizontal support overlaping yesterday's low of185.25. A breakout below this level would open the way to further weakness toward 184.10. Only a break above the key resistance at 187.25 would call for further upside toward yesterday's high of 188.15 at first and then toward 188.70.
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 185.25. A break of that target will move the pair further downwards to 184.10. The pivot point stands at 187.25. In case the price moves in the opposite direction bouncing 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 188.15 and the second target at 188.70.
Resistance levels: 188.15 188.70 189.45
Support levels: 185.25 184.10 183.35
The material has been provided by InstaForex Company – www.instaforex.com