Technical Analysis of GBP/JPY for May 16, 2016
GBP/JPY is under pressure. The pair is accelerating on the downside after breaking below 157.15, which should now play a key resistance role. Meanwhile both 20-period and 50-period moving averages are descending and maintain a bearish bias. A first target to the downside is set at the horizontal support and overlap at 122.35. A break below this level would open the way to further weakness toward 155.35.
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 155.35. A break of this target will move the pair further downwards to 154.65. 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 157.75 and the second target at 158.45.
Resistance levels: 157.75, 158.45, 159.50
Support levels: 155.35,154.65, 153.85