GBP/JPY is expected to trade with a bearish bias as key resistance is seen at 185.45. The pair is currently moving sideways below its key resistance at 185.45. The intraday RSI is seen around 50 with a lack of upward momentum. The first downside target is therefore set at a low of 183.15, which was hit on August 27. A breakout below this level would open the way to the horizontal support and overlap at 182.50. Only a break above the key resistance at 183.15 would call for further upside.
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 183.15. A break of that target will move the pair further downwards to 182.50. The pivot point stands at 185.45. 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 186.60 and the second target at 187.35.
Resistance levels: 186.60 187.35 188
Support levels: 183.15 182.50 182