GBP/JPY is expected to trade in a lower range as the pair is under pressure now. The pair reached lower tops and lower bottoms confirming a bearish outlook. Downward pressure is reinforced by a declining of the 50-period MA, which acts as resistance now. In addition, the intraday RSI is below its neutrality level of 50 lacking upward momentum. As long as 184.85 is not broken, the pair is likely to test its previous low at 183.35 again. A break below 183.35 would call for a further downward movement to 182.60.
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 183.35. A breakout of that target will move the pair further downwards to 182.60. The pivot point stands at 184.85. 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 185.40 and the second target at 186.
Resistance levels: 185.40 186 186.75
Support levels: 183.35 182.60 182
