GBP/JPY is expected to trade in a lower range as key resistance is set at 162.80. The pair remains under pressure below its nearest resistance at 1.3315, and is likely to post a new decline. The process of lower highs and lows remains intact, which should also confirm a negative outlook. Besides, the relative strength index lacks upward momentum. Hence, as long as 162.80 is not surpassed, the risk of the break below 161.35 remains high.
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 161.35. A break of this target will move the pair further downwards to 160.70. The pivot point stands at 162.80. 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 163.40 and the second target at 164.15.
Resistance levels: 163.40, 164.15, 164.60
Support levels: 161.35, 160.70, 160