GBP/JPY is under pressure. The pair failed to break above its key resistance at 131.25 and consolidated on the downside. The declining 50-period moving average suggests that the pair still has potential for a further downward movement. In addition, the relative strength index is below its neutrality level at 50 and lacks upward momentum. As long as 131.25 holds on the upside, look for a further drop toward 129.65 and even 129.10 in extension.
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 129.65. A break below this target will move the pair further downwards to 129.10. The pivot point stands at 131.25. 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 131.65 and the second one at 132.30.
Resistance levels: 131.65, 132.30, 133.25
Support levels: 129.65, 129.10, 128.35
