FX.co ★ Technical analysis of GBP/JPY for January 06, 2016

GBP/JPY is under pressure on an intraday basis. The pair has accelerated to the downside after breaking down its previous support at 175.10, which should now play a key resistance role. The first target to the downside is set at the horizontal support and overlap at 173. A break below this level would open the way to further weakness toward 172.40.

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 173. A break of that target will move the pair further downwards to 172.45. The pivot point stands at 175.10. 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 176.15 and the second target at 176.90.

Resistance levels: 176.15, 176.90, 177.50

Support levels: 173, 172.40, 172