Technical Analysis of GBP/JPY for April 28, 2016
GBP/JPY is expected to trade in downside. The pair is still supported by its ascending trend line, and it is moving up. A continuation of the downside movement is more likely to occur in the coming trading hours, as the 20-period and 50-period moving averages are negative and the relative strength index stands firmly below its neutrality area, calling for a more decline. In that case, the pair is likely to decline to 156.55 and 155.50 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 156.55. A break of this target will move the pair further downwards to 155.50. 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 161.55 and the second target at 162.80.
Resistance levels: 161.55, 162.80, 163.35
Support levels: 156.55, 155.50, 154.65
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