GBP/JPY is expected to trade in a lower range as the key resistance stands at 176.35. The pair stays below its key resistance at 176.35 and remains on the downside. Meanwhile, the relative strength index stays below 50. The first target to the downside is set at the horizontal support and overlap at 174.05. A break below this level would open the way to further weakness toward 173.25.

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 174.05. A break of that target will move the pair further downwards to 173.25. The pivot point stands at 176.35. 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 176.90 and the second target at 177.50.

Resistance levels: 176.90, 177.50, 178.20

Support levels: 174.05, 173.25, 172.65