Source: PaxForex Premium Analytics Portal, Technical Insight

GBP/JPY picks up bids to print mild gains around 166.65 heading into Wednesday’s London open. In doing so, the cross-currency pair bounces off the 21-SMA to reverse the previous day’s losses from the one-week high.

GBP/JPY,D1

Pivot: 166.76

Analysis:

As long as the price is below 167.00 follow the recommendations below:

• Time frame: D1
• Recommendation: short position
• Entry point: 166.76
• Take profit 1: 163.00
• Take Profit 2: 159.80

Alternative scenario:

If the level of 167.00 is broken-out, follow the recommendations below:

• Time frame: D1
• Recommendation: long position
• Entry point: 167.00
• Take profit 1: 169.00
• Take profit 2: 171.00

Comment:

RSI indicates the potential for a downtrend in the medium term.

Key levels: