GBP/JPY is expected to trade in a higher range as downside movements prevail. The pair remains being capped by its declining 50-period intraday moving average 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 184.30. A breakout below this level would open the way to further weakness toward 183.85.
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 184.30. A break of that target will move the pair further downwards to 183.85. The pivot point stands at 185.10. 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 185.60 and the second target at 186.
Resistance levels: 185.60 186 186.40
Support levels: 184.30 183.85 183