GBP/JPY is under pressure. The pair accelerated on the downside and broke below the lower boundary of the Bollinger Bands, which should indicate a continuation of the negative trend. Besides, the downward momentum is further reinforced by the declining 20-period and 50-period moving averages. The relative strength index broke below its "oversold" level at 30, but has not yet displayed any reversal signal.
Therefore, a break below 140.00 would call for a further decline to 138.90 and even to 138.65 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 138.90. A break below this target will move the pair further downwards to 138.65. The pivot point stands at 140.00. 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 140.50 and the second one at 141.30.
Resistance levels: 140.50, 141.30, and 142.00
Support levels: 138.90,138.65, and 138.00
The material has been provided by InstaForex Company - www.instaforex.com
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