GBP/JPY is Under pressure. The pair has been capped by both descending 20-period and 50-period moving averages and remains on the downside. The technical configuration remains negative as the 20-period moving average is below the 50-period one, and the relative strength index is below its neutrality area at 50.
As long as 139.35 holds as the key resistance, expect a break below the nearest support at 138.25 at first. A break below 138.25 allows for the further drop to 137.75 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 138.25. A break below this target will move the pair further downwards to 137.75. The pivot point stands at 139.35. 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 140.20.
Resistance levels: 139.80, 140.20, and 140.50
Support levels: 138.25,137.75, and 137.00
The material has been provided by InstaForex Company – www.instaforex.com