GBP/JPY is expected to trade in a lower range. The pair is currently challenging its key resistance at 172.50 and remains on the downside. The 20-period moving average stays below the 50-period one, and the relative strength index lacks upward momentum. The first target to the downside is set at the horizontal support and overlaps at 170.10. A breakout below this level would open the way to further weakness toward 168.60.
The pair is trading above its pivot point. It is likely to trade in a wider range as long as it remains above its pivot point. As long as the price holds above its pivot point, long positions are recommended with the first target at 170.10 and the second target at 168.80. In the alternative scenario, short positions are recommended with the first target at 173.60 if the price moves below its pivot points. A break of this target is likely to push the pair further downwards, and one may expect the second target at 174.45. The pivot point is at 172.50.
Resistance levels: 173.60, 174.45, 175
Support levels: 170.10, 168.60, 168