GBP/JPY is expected to trade in a lower range as a downside movement prevails . The pair remains capped by its declining 50-period intraday moving average and stays on the downside. Meanwhile, the intraday relative strength index lacks upward momentum. The first downside target is therefore set at the horizontal support and overlap at 184.90. A breakout below this level would open the way to further weakness towards 184.30.
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 184.90. A break of that target will move the pair further downwards to 184.30. The pivot point stands at 186. 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 186.40 and the second target at 187.
Resistance levels: 186.40 187 187.75
Support levels: 184.90 184.30 183.70