FX.co ★ Technical analysis of GBP/JPY for June 27, 2016

GBP/JPY is under pressure. The decision by UK voters to exit the European Union sent shockwaves across global financial markets. The pair stays below 147.50 and remains capped by the 50-period moving average. The relative strength index is badly directed. As long as 147.50 holds as the key resistance, a drop toward 133.30 and even 131.90 is possible.

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 133.30. A break below this target will move the pair further downwards to 131.90. The pivot point stands at 147.50. 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 153 and the second one, at 156.30.

Resistance levels: 153.00, 156.30, 157

Support levels: 133.30, 131.90, 130