GBP/JPY is under pressure. The pair remains under pressure below its horizontal resistance at 140.05 and is expected to post further consolidation. Currently the 20-period moving average stays below the 50-period moving average, and the Bollinger bands were narrowing, which suggests a low volatility and possible breakout in the coming sessions. Meanwhile the relative strength index is around its neutrality area at 50 and lacks upward momentum. As long as the key resistance at 140.05 is not broken above, expect further drop to 138 at first.
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 138.00. A break below this target will move the pair further downwards to 137.05. The pivot point stands at 140.05. 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 140.80 and the second one at 141.45.
Resistance levels: 140.80, 141.45, 142.00
Support levels: 138.00,137.05, 136.15
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