GBP/JPY is expected to trade in a lower range as the pair is under pressure. The pair is turning down following a double top pattern, and is expected to post further decline. Meanwhile, the 20-period moving average stays below the 50-period one and the relative strength index is badly directed. The first target to the downside is set at the horizontal support and overlap at 126.95. A break below this level would open way to further weakness toward 157.35.
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 158. A break of this target will move the pair further downwards to 157.35. The pivot point stands at 159.55. 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 160.05 and the second target at 160.60.
Resistance levels: 160, 160.60, 161.05
Support levels: 158, 157, 157.35