Technical Analysis of GBP/JPY for May 24, 2016
GBP/JPY is under pressure. Currently trading at 159.55, the pair has been capped by its descending 20-period moving average and remains under pressure. And the declining 50-period moving average also maintains a bearish bias. As long as 159.55 is not broken above, the pair is expected to test 157.45 in the coming days.
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 157.45. A break of this target will move the pair further downwards to 156.95. The pivot point stands at 159.55. 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 160.25 and the second target at 161.
Resistance levels: 160.25, 161.00, 161.65
Support levels: 157.45, 156.95, 156