GBP/JPY is expected to trade in a lower range. The pair remains on the downside and is currently challenging its key resistance at 136.45. And the intraday RSI lacks further upward momentum. The first target to the downside is therefore set at yesterday's low at 185.25. A break below this level would open the way to further weakness towards the horizontal support and overlap at 184.10 in extension. Only a break above the key resistance at 187.25 would call for further upside.
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
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