GBP/JPY is expected to trade with bearish bias. The pair is turning down from its key resistance at 144.55, and has broken below both 20-period and 50-period moving averages. Meanwhile, the relative strength index has broken below the previous trend line since January 25. As long as the key resistance holds at 144.55, the risk of a break below 142.55 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 143.50. A break below this target will move the pair further downwards to 142.95. The pivot point stands at 144.55. 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 144.95 and the second one at 145.40.
Resistance levels: 144.95, 145.40, 145.80
Support levels: 143.50, 142.95,142.35
The material has been provided by InstaForex Company - www.instaforex.com
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