GBP/JPY is expected to trade with a bearish bias. The pair remains on the downside and is looking for a lower bottom. The relative strength index has been capped by a negative trend line since May 30 and lacks upward momentum. As long as 158.75 is not broken above, target 155.90 as the next support.
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
