GBP/JPY is expected to trade with bearish bias as key resistance is at 158.75. The pair was capped by its descending 50-period moving average and it remains on the downside. The relative strength index stuck against 50 and lacks upward momentum. As long as 158.75 is not broken above, the pair is expected to test yesterday's low at 155.90 at first.
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 155.90. A break of this target will move the pair further downwards to 155. The pivot point stands at 158.75. 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 159.75 and the second one at 160.70.
Resistance levels: 159.75, 160.70, 161.50
Support levels:155.90, 155, 154.25
