GBP/JPY is Under pressure. The pair is trading within the bearish channel, which confirms a negative outlook. The downward momentum is further reinforced by the declining 50-period moving average. The relative strength index is capped by the descending trend line since Feb 27.
To conclude, as long as 140.45 holds on the upside, a further decline to 138.90 and even to 138.50 seems more likely to occur.
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 138.90. A break below this target will move the pair further downwards to 138.50. The pivot point stands at 140.45. 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 140 and the second one at 0.7205.
Resistance levels: 140.80, 141.20, and 142.00
Support levels: 138.90,138.50, and 138.00
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