GBP/JPY is expected to trade in a lower range. Key resistance is seen at 163.85. The pair stays below its key resistance at 163.85 and remains capped by its declining 50-period moving average. Meanwhile, the relative strength index lacks upward momentum. The first target to the downside is set at the horizontal support and overlap at 161. A breaout below this level would open the way to further weakness at 159.80.
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 161.00. A break of this target will move the pair further downwards to 159.80. The pivot point stands at 163.85. 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 164.80 and the second target at 165.90.
Resistance levels: 164.80, 165.90, 166.65
Support levels: 161, 159.80, 159
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