FX.co ★ Technical analysis of GBP/JPY for September 26, 2016

GBP/JPY is expected to trade with bearish bias as key resistance is at 131.25. The pair is posting some rebounds, but is still under pressure below its key horizontal resistance at 1.3010, which maintains the strong selling pressure. The downward momentum is further reinforced by a descending 50-period moving average. Even though a continuation of the technical rebound cannot be ruled out, its extent should be limited. As long as 131.25 is not surpassed, the pair is likely to drop to its nearest support at 129.40. In case of a breakout, look for further downsides to 129.10.

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 129.40. A break below this target will move the pair further downwards to 129.10. The pivot point stands at 131.25. 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 131.65 and the second one, at 132.30.

Resistance levels: 131.65, 132.30, 133.25

Support levels: 129.40, 129.10, 128.35