GBP/JPY is expected to trade with a bearish bias as key resistance is seen at 164.35. The pair is currently challenging its descending 50-period moving average and remains under pressure. Meanwhile, the relative strength index lacks upward momentum. The first target to the downside is set at the horizontal support and overlap at 160. A breakout below this level would open the way to further weakness toward 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