GBP/JPY is expected to trade with bearish bias as the key resistance stands at 134.60. The pair eventually broke below the support level at 134.60. Since then it has posted a rebound and is currently trading around the 20-period moving average, which stands below the 50-period one. Meanwhile, the intraday relative strength index remains below 50, suggesting a lack of momentum for the rebound. As long as 134.60 holds as the key resistance, the pair is expected to return to the first downside target at 132.15.
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 132.15. A break below this target will move the pair further downwards to 131.10. The pivot point stands at 134.60. 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 135.60 and the second one at 136.30.
Resistance levels: 135.60, 136.30, 137.10
Support levels: 132.15, 131.10, 130.25
The material has been provided by InstaForex Company - www.instaforex.com