Technical Analysis of GBP/JPY for April 18, 2016
GBP/JPY is expected to trade in a lower range as 152 is in sight. The pair is accelerating on the downside and is looking for a lower bottom. Meanwhile, the relative strength index is badly directed. The first target to the downside is set at the horizontal support and overlap at 152. A break below this level would open way to further weakness toward 151.40.
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 152. A break of this target will move the pair further downwards to 151.40. The pivot point stands at 154.05. 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 154.75 and the second target at 155.30.
Resistance levels: 154.75, 155.30, 156.70
Support levels: 152, 151.40, 150.70
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