Technical Analysis of GBP/JPY for April 08, 2016
GBP/JPY is expected to trade in a lower range as key resistance is at 153.70. The pair has been capped by its descending 50-period moving average and remains under pressure. The relative strength index stays below its 50% neutrality area and lacks upward momentum. The first target to the downside is set at the horizontal support and overlap at 15370. A break below this level would open way to further weakness toward 151.80.
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 151.80. A break of this target will move the pair further downwards to 151.05. The pivot point stands at 153.70. 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 154.50 and the second target at 155.45.
Resistance levels: 154.50, 155.45, 156.35
Support levels: 151.80, 151.05, 150.45
The material has been provided by InstaForex Company - www.instaforex.com
