GBP/JPY is expected to trade with bearish bias with no long-term direction. The pair is moving around its 20-period and 50-period moving averages within a trading range between 161.90 and 160. The bias remains bearish and further decline is expected with the next target set at 160 at first. If the pair turns down and breaks below the horizontal support at 160, it would open the way to further weakness towards 159.00.
Trading Recommendations:
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. A break of this target will move the pair further downwards to 159. The pivot point stands at 161.90. 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 162.55 and the second target at 163.45.
Resistance levels: 162.55, 163.45, 164.25
Support levels:160, 159, 158.05
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