GBP/JPY is expected to trade in a lower range as key resistance stands at 184.55. The pair is turning down against its key resistance at 184.55 and remains on the downside. Both 20-period and 50-period moving averages are turning flat, while the relative strength index is below 50. The first target to the downside is therefore set at 183.25. A break below this level would open the way to further weakness towards 182.95.
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 183.25. A break of that target will move the pair further downwards to 182.95. The pivot point stands at 184.55. 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 184.95 and the second target at 185.4 0.
Resistance levels: 184.95 185.40 186
Support levels: 183.25 182.95 182
