GBP/JPY is expected to trade in a lower range. The pair is reversing downwards after breaking below its previous support at 182.40, which should now play a key resistance role. A double top pattern has been validated, calling for an intraday trend reversal. And the descending 50-period intraday MA maintains a bearish bias. Moreover, the intraday RSI remains below its 50% neutrality area and is capped by a declining trendline. The first target to the downside is therefore set at 180.50. A break below this level would open the way to further weakness towards the horizontal support and overlap at 180 in extension.
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 180.50. A break of that target will move the pair further downwards to 180. The pivot point stands at 182.40. 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 183.35 and the second target at 184.
Resistance levels: 183.35 184 185.10
Support levels: 180.50 180 179.15
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