GBP/JPY is expected to continue the downside movement. The pair broke below its rising 50-period moving average as well as an ascending trend line and is consolidating. The 20-period moving average is turning down, while the relative strength index is below its neutrality level at 50.
As long as 146.30 holds on the upside, look for a further drop towards 145.20 and even 144.90 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 145.20. A break below this target will move the pair further downwards to 144.90. The pivot point stands at 146.30. 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 147.00 and the second one at 147.35.
Resistance levels: 147.00, 147.35, and 148.60
Support levels: 145.20,144.90, and 144.15
The material has been provided by InstaForex Company - www.instaforex.com
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