Technical Analysis of GBP/JPY for May 02, 2016
GBP/JPY is expected to trade with bearish bias. The pair still remains under pressure below its key resistance at 157.15. Meanwhile the relative strength index lacks strong upward momentum. As long as 157.15 is not broken up, the first target to the downside is set at 154. A break below this level would open the way to further weakness towards 153.15.
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 154. A break of this target will move the pair further downwards to 153.15. The pivot point stands at 157.15. 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 158.40 and the second target at, 159.10.
Resistance levels: 158.40, 159.10, 159.95
Support levels: 154, 153.15, 152.20
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