GBP/JPY is expected to trade in a lower range. The pair stays below its key resistance at 181.80 capped by its descending 50-period moving average. Meanwhile, the relative strength index lacks upward momentum. The first target to the downside is set at the horizontal support and overlap at 180.20. A breakout below this level would open the way to further weakness toward 179.25.
Trading recommendations:
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 180.20. A break of that target will move the pair further downwards to 179.25. The pivot point stands at 181.80. 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 182.50 and the second target at 183.15.
Resistance levels: 182.50 183.15 184
Support levels: 180.20 179.25 178.65
The material has been provided by InstaForex Company - www.instaforex.com