GBP/JPY is under pressure. The pair has been capped by a negative trend line, and remains under pressure. Meanwhile, the 20-period moving average stays below the 50-period one, and the relative strength index lacks upward momentum. The weakening of British pound, which experienced a flash crash of up to 10% in early Asian trading hours Friday, seemed to benefit stocks. The FTSE100 advanced 0.6% to 7,044, just within 1% of its record close seen in 2015. Mining firms and Asia-exposed Standard Chartered and HSBC posted gains.
As long as 130.00 holds as the key resistance, a drop toward 126 is possible.
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 126.00. A break below this target will move the pair further downwards to 124.40. The pivot point stands at 130. 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 133.00 and the second one at 132.30.
Resistance levels: 131.00, 32.30, 133.25
Support levels: 126, 124.40, 123
The material has been provided by InstaForex Company – www.instaforex.com
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