GBP/JPY is expected to trade in a higher range. After the recent upside breakout of an ST declining trend line, the pair validated an intraday bullish reversal, and is turning up now. The nearest support at 160.10 should maintain strong buying pressure. A bullish cross between the 20-period and 50-period moving averages has been identified as well. In these perspectives, as long as 160.10 holds on the downside, look for further advance to 161.85 and 162.85 in extension.
The pair is trading above its pivot point. It is likely to trade in a wider range as long as it remains above its pivot point. Therefore, long positions are recommended with the first target at 161.85 and the second one at 162.85. In the alternative scenario, a short position is recommended with the first target at 159 if the price moves below its pivot points. A break of this target is likely to push the pair further downwards, and one may expect the second target at 157.75. The pivot point is at 160.10.
Resistance levels: 161.85, 162.85, 163.40
Support levels: 159.00, 157.75, 156.90