GBP/JPY is expected to trade in a lower range as it is capped by a negative trend line. The pair has been capped by a declining trend line and is accelerating on the downside. Meanwhile, the relative strength index is badly directed. As long as 153.70 holds as the key resistance, target 149 and 148 as the next supports.
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 149. A break of this target will move the pair further downwards to 148.00. The pivot point stands at 153.75. 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 155 and the second one at 156.25.
Resistance levels: 155, 156.25, 157.25 Support levels: 149, 148, 147.25
