GBP/JPY is under pressure. The pair has been capped by its 20-period moving average, which remains below the 50-period moving average. The horizontal level at 147.15 should now play a key resistance role. In addition, the relative strength index is below its neutrality area at 50, and lacks upward momentum.
Therefore, as long as 147.15 holds as the key resistance, expect a break below the nearest support at 146.15 at first. A break below 146.15 allows for further drop to 145.70 as likely.
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 146.15. A break below this target will move the pair further downwards to 145.70. The pivot point stands at 147.15. 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 147.55 and the second one at 148.
Resistance levels: 147.55, 148.00, and 148.85
Support levels: 146.15,145.70, and 145.00
The material has been provided by InstaForex Company - www.instaforex.com