GBP/JPY is expected to trade in a higher range as the bias remains bullish. The pair remains on its rebound track, while being supported by the over-lapping 20- and 50-period moving averages. The relative strength index is above the neutrality level of 50 lacking downward momentum. As long as the bullish bias persists, the pair is expected to retest the first upside target at 166.65. Above 166.65, the next resistance is seen at 167.70.
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 166.65. A break of this target will move the pair further downwards to 167.70. The pivot point stands at 163.90. 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 162.85 and the second target at 161.65.
Resistance levels: 166.65, 167.70, 168.45
Support levels: 162.85, 161.65, 161