GBP/JPY is under pressure. The pair remains under pressure below its key resistance at 179, and is moving sideways. Meanwhile, the relative strength index lacks strong upward momentum. The first target to the downside is set at the horizontal support and overlap at 178.10. A breakout below this level would open the way to further weakness toward 177.70.
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 178.10. A break of that target will move the pair further downwards to 177. The pivot point stands at 179.00. 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 179.55 and the second target at 180.05.
Resistance levels: 179.55, 180.05, 181
Support levels: 178.10, 177.70, 177
The material has been provided by InstaForex Company – www.instaforex.com