09.01.201713:33 Forex Analysis & Reviews: Technical analysis of GBP/JPY for January 09, 2017

GBP/JPY is under pressure. The pair recorded a series of lower tops and lower bottoms, which confirms a negative view. The declining 20-period and 50-period moving averages are playing resistance roles and maintain the downside bias. The relative strength index broke below its 30% level, which is a bearish sign. Additionally, 143.60 is playing a key resistance role, which should limit the upside potential. As long as this key level is not broken up, look for a further drop toward 141.70 and even 141.20 in extension.

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 141.70. A break below this target will move the pair further downwards to 141.20. The pivot point stands at 143.60. 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 144.05 and the second one at 144.40.

Resistance levels: 144.40, 144.95, 145.40

Support levels: 141.70, 141.20, 140.40