GBP/JPY is expected to trade in a higher range. The pair stands above its support at 156.45 and is moving sideways around its 20-period and 50-period moving averages. Even though a continuation of the consolidation cannot be ruled out, its extent should be limited. Further upside is expected with the next horizontal resistance and overlap set at yesterday's high at 157.75 at first. A break above this level would call for further advance toward 158.45 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 157.75 and the second one, at 158.45. In the alternative scenario, short positions are recommended with the first target at 155.90 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 155.90. The pivot point is at 156.45.
Resistance levels: 157.75, 158.45, 159.50
Support levels: 155.90, 155.35, 154.35