GBP/JPY is under pressure and expected to trade with bearish bias. The pair broke below its 20-period and 50-period moving averages and accelerated on the downside. The bearish momentum is reinforced further by its declining 20-period and 50-period moving averages, which act as resistance and maintain the downside bias. The relative strength index is bearish below its 50% level and shows upside momentum. As long as resistance holds at 137.95, look for further downside toward 135 and even 133.85 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 135. A break below this target will move the pair further downwards to 133.85. The pivot point stands at 137.95. If 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 138.50 and the second one at 139.50.
Resistance levels: 138.75, 139.50, 140.15
Support levels: 135, 133.85, 133
The material has been provided by InstaForex Company – www.instaforex.com
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