GBP/JPY is expected to trade with bearish bias. Key resistance is at 185.45. The pair has reversed downwards after breaking below its previous support at 185.45, which should now play a key resistance role. The descending 50-period MA maintains a bearish bias. The intraday RSI is still negatively oriented. The first target to the downside is therefore set at the horizontal support and overlaps at yesterday’s low of 184.10. A break below this level would open the way to further weakness towards 183.35 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 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
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