GBP/JPY is expected to trade with bearish bias as key resistance is at 185.55. The pair remains under pressure below its key resistance at 185.55, and it seems more likely to challenge its nearest support at 184.10. The intraday RSI is badly directed, calling for further decline. Besides, the 20- and 50-period intraday MAs are mixed to bearish. In this case, as long as 0.6350 is not surpassed, the risk of a break below 184.10 remains high. Our next down target is set at 185.55.
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 184.10. A break of that target will move the pair further downwards to 183.35. The pivot point stands at 1855.55. 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 186.45 and the second target at 187.40.
Resistance levels: 186.40 187.45 188
Support levels: 184.10 183.35 182.55
The material has been provided by InstaForex Company – www.instaforex.com