GBP/JPY is expected to trade with a bearish bias as the pair is capped by a negative trend line. The technical picture of the GBP/JPY is bearish below a declining trend line, which emerged on Nov 8. The descending 20-period and 50-period moving averages are playing resistance roles and maintain the downside bias. The relative strength index is below its neutrality level at 50 and lacks upward momentum. Additionally, 129.20 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 127.55 and 126.45 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 127.55. A break below this target will move the pair further downwards to 126.45. The pivot point stands at 129.20. 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 130.40 and the second one at 131.00.
Resistance levels: 130.40, 131.00, 132
Support levels: 127.55, 126.45, 125.20
The material has been provided by InstaForex Company - www.instaforex.comFrom www.instaforex.com https://www.instaforex.com/forex_analysis/84021/
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