GBP/JPY is expected to trade in lower rang as the pair is capped by a negative trend line. The pair is consolidating on the downside and is capped by a bearish trend line since April 4. The downward momentum is further reinforced by the declining 50-period moving average. The relative strength index is below its neutrality level at 50.
To sum up, as long as 138.30 is resistance, look for a new drop to 137 and even to 136.70 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 137.00. A break below this target will move the pair further downwards to 136.70. The pivot point stands at 138.30. 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 138.95 and the second one at 139.45.
Resistance levels: 138.95, 139.45, and 140.15
Support levels: 137.00,136.70, and 136.15
The material has been provided by InstaForex Company - www.instaforex.comfrom www.instaforex.com
