GBP/JPY is under pressure. The pair has been capped by its descending 50-period moving average, and remains on the downside. Meanwhile, the relative strength index lacks upward momentum. European stocks were broadly negative with the STOXX Europe 600 easing 0.2%. Both Germany's DAX and France's CAC shed 0.4%, while the U.K.'s FTSE gained 0.2%. As long as 132.05 is not broken above, the risk of a break below 130.00 remains high.
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 130.00. A break below this target will move the pair further downwards to 128.80. The pivot point stands at 132.05. 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 132.70 and the second one at 133.20.
Resistance levels: 132.70, 133.20 , 134.60
Support levels: 130.00, 128.80, 128.00
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