GBP/JPY is expected trade in a lower range as the key resistance is at 188.25. The pair remains capped by its key resistance at 188.25 and stays on the downside. Meanwhile, the intraday relative strength index lacks upward momentum. The first target to the downside is therefore set at the horizontal support and overlap at 187.20. A break below this level would open the way to further weakness towards 186.80.
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 187.20. A break of that target will move the pair further downwards to 786.80. The pivot point stands at 188.25. 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 188.85 and the second target at 189.30.
Resistance levels: 188.85 189.30 190
Support levels: 187.20 186.80 185.95