GBP/JPY is expected to trade in a lower range as the pair is under pressure. The pair stays on the downside and remains under pressure below its key resistance at 161.85. The descending 50-period moving average maintains a bearish bias. Meanwhile the relative strength index lacks upward momentum. The first target to the downside is therefore set at 160. A break below this level would open the way to further weakness toward 159.40.
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 162.85 and the second one at 163.40. In the alternative scenario, short positions are recommended with the first target at 160 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 159.40. The pivot point is at 160.70.
Resistance levels: 162.50, 162.85, 163.40
Support levels: 160, 159.40, 158.40