Technical Analysis of GBP/JPY for April 15, 2016
GBP/JPY is expected to trade with a bearish bias. The pair is heading lower and stays below its key resistance at 155.75. Meanwhile, the relative strength index lacks upward momentum. The first target to the downside is set at the horizontal support and overlap at 153.95. A break below this level would open way to further weakness toward 153.45.
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 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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