GBP/JPY is under pressure. The pair is trading below 133.20, and remains under pressure. Meanwhile the 20-period moving average has crossed below the 50-period one and the relative strength index is negatively oriented. As long as 133.20 is not broken above, the risk of a drop toward 131.20 remains high.
The pair is trading below its pivot point. It is likely to tr ade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 131.10. A break below this target will move the pair further downwards to 131.00. The pivot point stands at 133.20. 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 133.95 and the second one at 134.60.
Resistance levels: 133.95 , 134.60, 135.60
Support levels: 131.10, 130.00, 129.20
The material has been provided by InstaForex Company - www.instaforex.com