Technical analysis of GBP/JPY for August 02, 2016

GBP/JPY is under pressure. The pair is consolidating on the downside below its key resistance at 136.30, which should limit the upside potential. The relative strength index is below its neutrality level at 50 and lacks upward momentum. As long as 115.30 is resistance, the pair is likely to decline to 134.50. A break below this level would call for further drop toward 133.85.

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 134.50. A break below this target will move the pair further downwards to 133.85. The pivot point stands at 136.30. 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 137.10 and the second one at 137.95.

Resistance levels: 137.10, 137.95, 138.75
Support levels: 134.50, 133.85, 133

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