GBP/JPY is expected to trade in a lower range as the key resistance is seen at 170.45. The pair has struck against its key resistance at 170.45 turning down. The 20-period and 50-period moving averages are above the prices now. Furthermore, the relative strength index fell below its neutrality area of 50, which should confirm a bearish reversal. Hence, as long as 170.45 holds on the upside, any rebounds should be limited before a new pullback to 168.50 and 167.35 in extension.
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 168.50. A break of that target will move the pair further downwards to 167.35. The pivot point stands at 170.45. 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 171.35 and the second target at 172.30.
Resistance levels: 171.35, 172.30, 173.45
Support levels: 168.50, 167.35, 166.25
The material has been provided by InstaForex Company - www.instaforex.com