GBP/JPY is expected to trade with a bearish bias in quiet holiday trade. The pair remains bullish above 160.00, representing a key horizontal level. The relative strength index stands firmly above its neutrality area at 50 and is around 70, which should confirm a positive outlook. Hence, as long as 16.00 is not broken, a new rise seems to be on the cards to 161.30 and 161.85 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 161.30 and the second one at 161.85. In the alternative scenario, short positions are recommended with the first target at 159.05 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 158.40. The pivot point is at 160.00.
Resistance levels: 161.30, 161.85, 162.85
Support levels: 159.05, 158.40, 157.50