GBP/JPY is expected to trade in a lower range. The pair is currently challenging the key horizontal resistance at 161.65. Intraday technical indicators are mixed and call for caution. As long as 161.65 is not broken up, the first target to the downside is set at 160.35. A break below this level would open the way to further weakness toward 160.
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 160.35. A break of this target will move the pair further downwards to 160. The pivot point stands at 161.65. 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 162 and the second target at 162.50.
Resistance levels: 162, 162.50, 162.85
Support levels: 160.35, 160, 159.40