Technical Analysis of GBP/JPY for April 14, 2016
GBP/JPY is under pressure and expected to trade in lower range. The pair ran down to 155.75 overnight before posting a rebound. Currently, the rebound is losing momentum while the pair remains capped by the descending 50-period moving average. The relative strength index stays below the neutrality level of 50 lacking upward momentum. The intraday outlook remains bearish and the pair should re-test the first downside target at 153.95 and the second one at 153.45.
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 153.95. A break of this target will move the pair further downwards to 153.45. The pivot point stands at 155.75. 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 156.70 and the second target at 158.05.
Resistance levels: 156.70, 158.05, 159
Support levels: 153.95, 153.45, 152.60
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