Technical analysis of GBP/JPY for March 15, 2017

GBP/JPY is expected to trade with the bearish bias. The pair has broken below its previous support at 139.95, which should now play a key resistance role. Both 20-period and 50-period moving averages are descending and should play resistance roles as well. Meanwhile, the relative strength index has broken down its 30 level, lacking upward momentum.

Therefore, as long as 139.95 holds as the key resistance, expect a break below the nearest support at 139.30 at first. A break below 120.30 allows for the further drop to 139.00 as likely.

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 139.30. A break below this target will move the pair further downwards to 139. The pivot point stands at 139.95. 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 140.25 and the second one at 140.55.

Resistance levels: 140.25, 140.55, and 140.95

Support levels: 139.30,139.00, and 138.45

The material has been provided by InstaForex Company – www.instaforex.com

Source:: Technical analysis of GBP/JPY for March 15, 2017