GBP/JPY is under pressure. The pair is trading below the declining 50-period moving average, which plays a resistance role and maintains the downside bias. The relative strength index is bearish and calls for a further drop.
Hence, as long as 142.10 is not surpassed, a new decline to 140.55 and even to 140.10 seems more likely to occur.
The pair moved as predicted yesterday and all our targets were hit. At present, 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 position is recommended with the first target at 140.55. A break below this target will move the pair further downwards to 140.10. The pivot point stands at 142.10. 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 142.45 and the second one at 142.78.
Graph Explanation: Black line shows the pivot point, present price above pivot point indicates the bullish position and below pivot points indicates the short position. Red lines shows the support levels and the green line indicates the resistance levels. These levels can be used to enter and exit trades.
Strategy : SELL at dips, Stop Loss: 142.10, Take Profit: 140.55
Resistance levels: 142.45, 142.78, and 143.35
Support levels: 140.55,140.10, and 139..50
The material has been provided by InstaForex Company - www.instaforex.com