GBP/JPY is expected to trade in a lower range. The pair is reversing down and stays below its key resistance at 168.25. Meanwhile, the relative strength index lacks upward momentum. The first target to the downside is set at the horizontal support and overlap at 166.20. A breakout below this level would open the way to further weakness toward 165.45.
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 166.20. A break of that target will move the pair further downwards to 165.45. The pivot point stands at 168.25. 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 169 and the second target at 169.85.
Resistance levels: 169, 169.85, 170.45
Support levels: 166.20, 165.45, 165
