GBP/JPY is expected to trade with a bearish bias. The pair remains capped by both 20-period and 50-period moving averages, and is staying on the downside. Meanwhile, the relative strength index has been capped by a negative trend line, and lacks upward momentum. As long as 142.00 holds as the key resistance, the risk of a break below 140.85 is high.
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 140.85. A break below this target will move the pair further downwards to 140.50. The pivot point stands at 142.00. 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 142.65 and the second one at 143.20.
Resistance levels: 142.65, 143.20, 143.75
Support levels: 140.85, 140.50, 140.05
The material has been provided by InstaForex Company - www.instaforex.com
No comments:
Post a Comment