Technical Analysis of GBP/JPY for April 07, 2016
GBP/JPY is under pressure and expected to trade in lower range and move towards 152.35. The pair has been capped by its descending 50-period moving average and it is looking for a lower bottom. The relative strength index stays below its 50% neutrality area and lacks upward momentum. A first target to the downside is set at the horizontal support and overlap at 124.65. A break below this level would open the way to further weakness towards 151.80.
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 152.35. A break of this target will move the pair further downwards to 151.80. The pivot point stands at 154.45. 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 156.65 and the second target at 158.35.
Resistance levels: 156.65, 158.35, 159.20
Support levels: 152.35, 151.80, 151
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