GBP/JPY is under pressure. The pair is trading below its descending 20-period and 50-period moving averages, and is likely to test its next support at 130.20. At the same time, 131.55 represents a strong resistance and the upside attempts should be limited by this level. Besides, the relative strength index is bearish below its neutrality area at 50, and lacks upward momentum. To sum up, as long as the resistance at 131.55 is not surpassed, the pair is likely to drop to 130.20 at first, and even to 129.75 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 130.20. A break below this target will move the pair further downwards to 129.75. The pivot point stands at 131.55. 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 131.95 and the second one, at 132.45.
Resistance levels: 131.95, 132.45, 133.20
Support levels: 130.20, 129.65, 129.10
