GBP/JPY is under pressure. The pair has accelerated to the downside after breaking down its previous support at 176.85, which should now play a key resistance role. The first target to the downside is set at the horizontal support and overlap at 175. A break below this level would open the way to further weakness towards 174.50.
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 175. A break of that target will move the pair further downwards to 174.50. The pivot point stands at 176.85. 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 177.50 and the second target at 178.30.
Resistance levels: 177.50, 178.30, 179
Support levels: 175, 174.50, 174
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