GBP/JPY is expected to trade in a lower range. The pair broke below the lower boundary of an intraday triangle pattern, which should validate a bearish reversal. The 20-period and 50-period moving averages are also turning down, and should continue to push the price lower. The relative strength index remains weak below its neutrality area of 50. To conclude moving below 160.60, look for a further decline to 159.35 and 158.60.
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 159.35. A break of this target will move the pair further downwards to 158.60. The pivot point stands at 160.60. 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 161.45 and the second target at 162.45.
Resistance levels: 161.45, 162.45, 163
Support levels: 159.35, 158.60, 157.50