GBP/JPY is under pressure now. The pair has retreated from its key resistance at 171.25 and remains on the downside. The 20-period moving average has just crossed below the 50-period one, and the relative strength index is negatively oriented. The first target to the downside is set at the horizontal support and overlap at 168.90. A breakout below this level would open the way to further weakness toward 168.10.
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 168.90. A break of that target will move the pair further downwards to 168.10. The pivot point stands at 171.25. 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 172.50 and the second target at 173.55.
Resistance levels: 172.50, 173.55, 174.10
Support levels: 168.90, 168.10, 167.35