GBP/JPY is expected to trade in a lower range as a downside move prevails. The pair remains capped by its declining 20-period simple moving average, and is likely to reveal new weaknesses in the coming trading hours. The relative strength index is bearish below its neutrality area at 50. Furthermore, the process of lower highs and lows remains intact on an intraday basis. Hence, below 157.50, look for further downsides to 155.70 and 154.70 in extension.
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 155.70. A break of this target will move the pair further downwards to 154.70. The pivot point stands at 157.50. 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 158.50 and the second target at 159.05.
Resistance levels: 158.50, 159.05, 160.35
Support levels: 155.70, 154.70, 153.15