GBP/JPY is turning down. Following the recent breakout of the 50-period moving average, the pair has clearly confirmed a bearish reversal, and should post new weaknesses in sight. The relative strength index also broke below its neutrality area at 50, and is badly directed. Last but not least, the 20-period moving average has crossed below the 50-period one. In these perspectives, as long as 157.75 holds on the upside, expect a return to 155.70 and 154.70 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 155.70. A break of this target will move the pair further downwards to 154.70. The pivot point stands at 157.75. 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 158.50 and the second target at 159.05.
Resistance levels: 158.50, 159.05, 160.35
Support levels: 155.70, 154.70, 153.15
The material has been provided by InstaForex Company – www.instaforex.com
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