GBP/JPY is under pressure and is capped by a negative trend line. As long as the trend line is not broken, the price is expected to remain below it. The pair has been capped by a descending trend line and remains on the downside. Meanwhile, the relative strength index lacks upward momentum. As long as 131.95 holds as the key resistance, a drop toward 129.55 is possible.
Trading recommendations:
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 129.55. A break below this target will move the pair further downwards to 128.75. The pivot point stands at 131.95. In case 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 132.60 and the second one, at 133.40.
Resistance levels: 132.60 , 133.40 , 134.15
Support levels: 129.55, 128.75 , 128.00
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