GBP/JPY is expected to trade with bearish bias as the pair is under pressure. The pair remains below the key resistance at 173 while being capped by the descending 50-period moving average. And the 20-period moving average stands below the 50-period one. As long as 173 is not surpassed, the pair is expected to return to the first downside target at 170.70 (around yesterday's low) before falling further to 169.60 (last seen on September 8).
Trading Recommendations:
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 170.470. A break of that target will move the pair further downwards to 169.60. The pivot point stands at 173. 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 174.00 and the second target at 175.10.
Resistance levels: 174.00, 175.10, 175.75
Support levels: 170.70, 169.60, 169