Technical Analysis of GBP/JPY for May 06, 2016
GBP/JPY is under pressure. The pair is turning down, while the 20-period moving average has broken the 50-period one. Meanwhile, the relative strength index stays below 50 and lacks downward momentum. The first target to the downside is set at the horizontal support and overlap at 154. A break below this level would open the way to further weakness toward 153.15.
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 154.40. A break of this target will move the pair further downwards to 153.15. The pivot point stands at 156.00. 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 157.50.
Resistance levels: 156.70, 157.50, 158.40
Support levels: 154.40, 153.15, 152.20
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