The GBP/JPY pair stays above its key support at 161.85 and remains choppy. Meanwhile, the relative strength index is mixed to bullish. The first target is set at the horizontal resistance and overlaps at 164.80. A breakout above this level would open the way to further rise towards 165.90.
Trading Recommendations:
The pair is trading above its pivot point. It is likely to trade in a wider range as long as it remains above its pivot point. Therefore, long positions are recommended with the first target at 164.80 and the second one at 165.90. In the alternative scenario, short positions are recommended with the first target at 161 if the price moves below its pivot points. A breakout of this target is likely to push the pair further downwards, and one may expect the second target at 159.80. The pivot point is set at 161.85.
