GBP/JPY is under pressure. The pair has reversed down and remains under pressure below its key resistance at 183.40. The descending 50-period MA maintains a bearish bias, and is currently playing a resistance role. Meanwhile, the intraday RSI lacks upward momentum. The first target to the downside is therefore set at the horizontal support and overlap at 183.40. A break below this level would open the way to further weakness towards 181.50 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 181.50. A breakout of that target will move the pair further downwards to 181.10. The pivot point stands at 183.40. 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 183.90 and the second target at 184.30.
Resistance levels: 183.90 184.30 184.85
Support levels: 181.50 181.10 180.50