GBP/JPY is expected to trade with a bearish outlook. The pair broke below a declining trend line, and is holding on the downside. The rising 50-period moving average is playing a resistance roles and maintains the downside bias. The relative strength index is below its neutrality level at 50 and lacks upward momentum.
As long as 145.40 holds on the upside, look for a further downward towards 144.30. A break below this level would call for a further downside towards 125.50.
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 144.30. A break below this target will move the pair further downwards to 143.75. The pivot point stands at 145.40. 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 145.80 and the second one at 146.30.
Resistance levels: 145.80, 146.30, and 147.00
Support levels: 144.30,143.75, and 143.00
The material has been provided by InstaForex Company - www.instaforex.com
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