GBP/JPY is under pressure. The pair is holding on the downside after it has failed to break above the nearest resistance at 133.95. The relative strength index is below its neutrality area at 50 and lacks upward momentum. Besides, the 50-period moving average is heading downward and plays a resistance role. To sum up, as long as 133.95 holds on the upside, the pair is likely to continue decrease towards 132.15 at first, and then even to 131.10.
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 133.95. 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 134.60 and the second one at 135.45.
Resistance levels: 135.60, 136.30, 137.10
Support levels: 132.15, 131.10, 130.25
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