GBP/JPY is expected to trade with a bearish bias as the key resistance is seen at 127.55. The pair remains under pressure below 127.55 following the bearish crossover of its 20-period and 50-period moving averages. Meanwhile, the relative strength index is below 50 and is negatively oriented. As long as 127.55 holds as the key resistance, the risk of a break below 126.20 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 126.20. A break below this target will move the pair further downwards to 125.60. The pivot point stands at 127.55. 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 128.05 and the second one at 128.50.
Resistance levels: 128.05, 128.50, 129.15
Support levels: 126.20, 125.60, 125.00
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