Technical Analysis of GBP/JPY for April 29, 2016
GBP/JPY is expected to trade in a lower range . Following yesterday's major collapse, the pair is now under pressure below its falling 50-period moving average. Even though a consolidation cannot be ruled out at the current stage, its extent should be very limited. The relative strength index is bearish below its neutrality area at 50. Hence, as long as 159.10 is not surpassed, the risk is now a slide below 155.90, which would trigger a new drop towards 155.25.
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 155.90. A break of this target will move the pair further downwards to 155.25. The pivot point stands at 159.10. 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 159.95 and the second target at 160.75.
Resistance levels: 159.95, 160.75, 161.55
Support levels: 155.90, 155.25, 154.65
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