GBP/JPY is under pressure. The pair retreated from the key resistance level at 1.2475, and broke below the 20-period moving average. The relative strength index has reversed down, calling for a further drop.
Therefore, as long as 140.40 holds on the upside, look for a further drop to 139.35 and even to 138.95 as possible.
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 139.35. A break below this target will move the pair further downwards to 138.95. The pivot point stands at 140.40. 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 141.00 and the second one at 141.30.
Resistance levels: 141.00, 141.30, and 142.00
Support levels: 139.35,138.65, and 138.65
The material has been provided by InstaForex Company - www.instaforex.com
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