GBP/JPY is under pressure. The pair is consolidating around its 20-period moving average, which remains below the descending 50-period moving average. The horizontal level at 143.15 should also 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 143.15 holds as the key resistance, expect a break below the nearest support at 142.40 at first.
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 142.40. A break below this target will move the pair further downwards to 142.00. The pivot point stands at 143.15. 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 143.50 and the second one at 144.10.
Resistance levels: 143.50, 144.10, and 145.00
Support levels: 142.40,142.00, and 141.00
The material has been provided by InstaForex Company - www.instaforex.com