FX.co ★ Technical analysis of GBP/JPY for January 12, 2017

GBP/JPY is under pressure as the key resistance is at 14.00. The pair remains capped by the 50-period moving average, and stays below its key resistance at 122.30. Meanwhile, the relative strength index is around its 50% neutrality area, and is turning down. As long as 141.00 holds as the key resistance, a break below 139.15 is possible.

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 139.15. A break below this target will move the pair further downwards to 138.40. The pivot point stands at 141.01. If 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 141.50 and the second one at 142.00.

Resistance levels: 141.50, 142.00, 142.40

Support levels: 139.15, 138.40, 138