GBP/JPY is expected to trade in a lower range. The pair is reversing down after breaking below its previous support at 193.90, which also capped the pair's bounce yesterday. The declining 50-period intraday MA maintains a bearish bias. The intraday RSI is below 50 and losing its upward momentum. The first downside target is seen at the horizontal support and overlap at 193. A break below this level would open the way towards 192.45.
Technical comment:
RSI is below 50 suffering the lack of upward momentum
Trading recommendations:
The pair is trading below its pivot point. It is likely to trade in a lower range as far as it remains below the pivot point. Short positions are recommended with the first target at 193. A break of that target will move the pair further downwards to 192.45. The pivot point stands at 193.90. 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, a long position is recommended with the first target at 194.60 and the second target at 195.20.
Resistance levels: 194.60 195.20 196
Support levels: 193 192.45 192
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