GBP/JPY is under pressure. The technical picture of GBP/JPY is negative. The pair broke below its key support at 131.75, which becomes a resistance now, and consolidated on the downside. The declining 50-period moving average suggests that the pair still has potential for further downside. The relative strength index is below its neutrality level at 50 and lacks upward momentum. As long as 131.75 is not broken, look for a further drop toward 111.90 and 111.20 in extension. Only a break above 113.00 would turn the outlook to positive with up targets at 130.50 and even 130.00.
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 130.50. A break below this target will move the pair further downwards to 130.00. The pivot point stands at 131.75. 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 132.45 and the second one, at 133.25.
Resistance levels: 132.45, 133.25, 134.75
Support levels: 130.50, 130.00, 129.25
