GBP/JPY is under pressure. The technical picture of the pair remains negative below the declining 50-period moving average, which is playing a resistance role and maintains the downside bias. The relative strength index is below its neutrality level at 50 and lacks upward momentum. Additionally, 137.85 is playing a key resistance role, which should limit the upside potential.
As long as this key level holds on the upside, look for a further drop toward 136.85 and even 136.50 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 136.85. A break below this target will move the pair further downwards to 136.50. The pivot point stands at 137.85. 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 138.15 and the second one at 138.45.
Resistance levels: 138.15, 138.45, and 139.00
Support levels: 136.85,136.50, and 136.00
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