Technical analysis of GBP/JPY for January 31, 2017 - Forex247

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Tuesday, January 31, 2017

Technical analysis of GBP/JPY for January 31, 2017

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GBP/JPY is expected to trade with a bearish bias as the key resistance at 142.35. The pair is posting a technical rebound, but remains under pressure below its key resistance at 121.90. The descending 50-period moving averages should maintain a bearish bias. Meanwhile, the relative strength index lacks upward momentum. As long as 142.35 holds as the key resistance, the risk of a break below 140.80 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 140.80. A break below this target will move the pair further downwards to 140.45. The pivot point stands at 142.35. 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 143.00 and the second one at 143.65.

Resistance levels: 143.00, 143.65, 144.15

Support levels: 140.80, 140.45,140.00

The material has been provided by InstaForex Company - www.instaforex.com


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