GBP/JPY is capped by a negative trend line. The pair remains under pressure below its negative trend line. Both the 20-period and 50-period simple moving averages are clearly turning down. Furthermore, the relative strength index lacks upward momentum. At the current stage, the prices seem more likely to test the nearest support at 179.25 (the previous low). The risk is a slide below this threshold, which would trigger a bearish acceleration toward 178.50.

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 179.25. A break of that target will move the pair further downwards to 178.50. The pivot point stands at 180.60. 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 181.20 and the second target at 182.10.

Resistance levels: 181.20 182.10 183

Support levels: 179.25 178.50 178