Technical Analysis of GBP/JPY for March 24, 2016
GBP/JPY Intraday: Bullish bias above 125.20. The pair is still below its key resistance at 158.40, and is likely to challenge its nearest support at 158.40 in the coming trading hours. The relative strength index is still positive, calling for a new rebound. In this case, as long as 160 (a horizontal technical level) is not broken, look for a further decline to 158.40 and 157.50 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 158.40. A break of this target will move the pair further downwards to 157.50. The pivot point stands at 160. 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 161.30 and the second target at 161.85.
Resistance levels: 161.30, 161.85, 162.85
Support levels: 158.40, 157.50, 156.75
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