Technical analysis of GBP/JPY for December 28, 2015

The GBP/JPY pair is expected to move mostly downside. The pair is moving sideways and is likely to face the key resistance at 180.10. Meanwhile, the relative strength index is turning down. The first downside target is seen at the horizontal support and overlap at 179. A breakout below this level would open the way to further weakness toward 178.50.

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 179.00. A break of that target will move the pair further downwards to 178.50. The pivot point stands at 180.10. 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 180.60 and the second target at 181.20.

Resistance levels: 180.60 181.20 182.10

Support levels: 179 178.50 178

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