GBP/JPY is under pressure and expected to continue its downward movement. The pair is capped by its descending 20-period moving average and remains on the downside. The declining 50-period moving average also maintains a bearish bias, and the relative strength index is negatively oriented. A first target to the downside is set at the horizontal support and overlap at 160. A break below this level would open the door towards 158.90.
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 160. A break of this target will move the pair further downwards to 158.90. The pivot point stands at 164.35. 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 165.45 and the second target at 166.45.
Resistance levels: 165.45, 166.65, 167.45
Support levels: 160, 158.90, 158