Technical analysis of GBP/JPY for March 16, 2017

GBP/JPY is trading under pressure. The pair recorded a succession of lower bottom, which confirmed a negative outlook. The downward momentum is further reinforced by the declining 20-period and 50-period moving averages. The relative strength index stands firmly below its neutrality level at 50 and lacks upward momentum.

To conclude, as long as 139.55 holds on the upside, expect a new downward to 138.75 and even to 138.50 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 138.75. A break below this target will move the pair further downwards to 138.50. The pivot point stands at 139.55. 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 139.80 and the second one at 140.05.

Resistance levels: 139.80, 140.05, and 140.55

Support levels: 138.75,138.50, and 138.00

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

Source:: Technical analysis of GBP/JPY for March 16, 2017