GBP/JPY is expected to trade in a lower range as the pair is under pressure now. The pair is trading below its key resistance at 169.40 and remains on the downside. The 20-period moving average stays above its 50-period one, while the relative strength index lacks downward momentum. Further downside is therefore expected with the next horizontal resistance and overlap set at 166.65 first. A breakout below this level would call for a further decline towards 166.05.

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 166.65. A break of that target will move the pair further downwards to 166.05. The pivot point stands at 169.40. 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 170.35 and the second target at 171.35.

Resistance levels: 170.35, 171.35, 172

Support levels: 166.65, 166.05, 165.50