GBP/JPY is under pressure. The pair has broken below its 50-period moving average which plays resistance role now and consolidated on the downside. The relative strength index is below its neutrality level and lacks upward momentum. Additionally, 131.25 acts as a key resistance, which should limit the upside potential. As long as 131.25 holds on the upside, look for a further drop toward 130.20 and even 129.65 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 130.20. A break below this target will move the pair further downwards to 129.65. The pivot point stands at 131.25. 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 131.65 and the second one at 132.30.
Resistance levels: 131.65, 132.30, 133.25
Support levels: 130.20, 129.65, 129.10
The material has been provided by InstaForex Company – www.instaforex.com
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