GBP/JPY is expected to trade in a lower range as the key resistance is seen at 182.70. The pair stays below its key resistance at 182.70 and is expected to test the low, which was reached on September 4, in the forthcoming sessions. The descending 50-period MA maintains a bearish bias. The intraday RSI lacks strong upward momentum. The first downside target is therefore set at the horizontal support and overlap at a low of 180.90. A break below this level would open the way to further weakness towards 180.
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 180.90. A break of that target will move the pair further downwards to 180. The pivot point stands at 182.70. 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 183.35 and the second target at 184.
Resistance levels: 183.35 184 185.10
Support levels: 180.90 180 179.15
The material has been provided by InstaForex Company - www.instaforex.com