GBP/JPY is expected to trade in a lower range. Key resistance is seen at 184.75. The pair stays below its key resistance at 184.75, and is expected to look for a lower bottom during the upcoming sessions. The 20-period intraday MA is below its 50-period one, calling for further downside as well. The intraday RSI lacks strong upward momentum. The first downside target is therefore set at the horizontal support and overlap at yesterday’s low of 182.50. A break below this level would open the way towards 181.30. Only a break above the key resistance level of 184.75 would call for further upside towards the horizontal resistance.
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 182.50. A break of that target will move the pair further downwards to 181.30. The pivot point stands at 184.75. 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 185.40 and the second target at 186.45.
Resistance levels: 185.40 186.45 187
Support levels: 182.50 181.30 180.75
The material has been provided by InstaForex Company – www.instaforex.com