Technical analysis of GBP/JPY for December 16, 2016

GBP/JPY is expected to extend its downside movement. The pair is trading on the downside and remains capped by its descending 20-period and 50-period moving averages. The relative strength index is bearish below its neutrality level at 50. Hence, as long as 147.00 is not broken up, we favor a down move with 145.90 and then 145.50 as targets.

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 145.90. A break below this target will move the pair further downwards to 145.50. The pivot point stands at 147.00. In case the price moves in the opposite direction and bounces back from the support level, it will go 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 147.55 and the second one at 148.15.

Resistance levels: 147.55, 148.15, 149.00
Support levels: 145.90, 145.50, 144.65

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