GBP/JPY is expected to trade with a bearish bias. The pair is testing the key resistance level at 185.35 now. Intraday indicators are mixed calling for caution. The 20-period MA has just crossed above the 50-period one. The intraday RSI is above its neutrality level of 50 lacking downward momentum. Investors should watch 133.90 closely. As long as 185.35 is not broken, the pair is likely to consolidate towards 184.05. A breakout below this level would call for a further drop to 183.60.
The pair is trading above its pivot point. It is likely to trade in a wider range as long as it remains above its pivot point. As long as the price holds above its pivot point, long positions are recommended with the first target at 184.05 and the second target at 183.60. In the alternative scenario, short positions are recommended with the first target at 185.65 if the price moves below its pivot points. A break of this target is likely to push the pair further downwards, and one may expect the second target at 186. The pivot point is at 185.35.
Resistance levels: 185.65 186 186.75
Support levels: 184.05 183.60 183
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