GBP/JPY is expected tp trade with bearish bias. The pair shows further downside potential after its downward breakout of its 20-period and 50-period moving averages, which are playing resistance roles now. The relative strength index is bearish below its neutrality level at 50 and lacks upward momentum. As long as 142.15 holds as resistance, look for a further drop to 140.80 and even 140.40 in extension.
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 140.80. A break below this target will move the pair further downwards to 140.40. The pivot point stands at 142.15. 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 142.55 and the second one at 143.15.
Resistance levels: 143.50, 144.15, 144.80
Support levels: 140.80,140.40, 139.75
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