GBP/JPY is expected to trade in a lower range as the key resistance is holding at 141.560. The pair is rebounding and broke above its 20-period and 50-period moving averages. The relative strength index is above its neutrality level at 50. Nevertheless, 141.50 is playing a key resistance role, which should limit the upside potential. As long as this key level is not broken, we keep our negative view unchanged with down targets at 140.60 and even 140.15 in extension.
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 140.60. A break below this target will move the pair further downwards to 140.15. The pivot point stands at 141.50. 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 142.00 and the second one at 142.40.
Resistance levels: 142.00, 142.40, 143.00
Support levels: 140.60, 140.15, 139.10
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