GBP/JPY is under pressure. The pair recorded a succession of lower tops and lower bottoms since October 12 and is consolidating on the downside. The relative strength index is capped by a negative trend line, which emerged on Oct 12, and is below its neutrality level at 50. Additionally, the 20-period moving average crossed below the 50-period one and is playing a resistance role. As long as 127.80 holds on the upside, look for a further drop toward 125.70 and even 124.80 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 125.70. A break below this target will move the pair further downwards to 124.80. The pivot point stands at 127.80. 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 128.70 and the second one at 130.00.
Resistance levels: 128.70, 130.00, 131.00
Support levels: 125.70, 124.80, 123.40
The material has been provided by InstaForex Company - www.instaforex.comFrom www.instaforex.com http://ift.tt/2dTYY6x
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