GBP/JPY is expected to trade with a bearish bias as the key resistance is seen at 167.35. The pair stays below its key resistance and remains under pressure. The 20-period moving average remains below the 50-period one, while the relative strength index lacks upward momentum. A first target to the downside is therefore seen at 164.55. A breakout below this level would open the way to further weakness toward 164.
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 164.55. A break of that target will move the pair further downwards to 164. The pivot point stands at 167.35. 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 168.00 and the second target at 168.90.
Resistance levels: 168.00, 168.90, 169.60
Support levels: 164.55, 164, 163.35