It will work but you have to be careful as the wiring that runs to the tail light is on the inside of the fender and the tire can get close to it and possibly rub it. A friend had a 160 and when he was swapping wheels we saw that his wiring was starting to fray. Rewrapped it and stuck it out of the way and it's fine now.

So in short, it will fit, but check your wiring under there before and after, and/or move it a bit. I have opted for a 150 on my bike as I don't want to deal with this possible hazard, but I know plenty of others with 160's who have had no problem.

Another thing to consider is that Metzeler tires are narrower than Dunlops regardless of the 160 written on the side.

 

The issue will end up being with your lowering. You won't have an issue with side-to-side rubbing, but you may end up with either contact with your license plate or with the top of the fender (or both). If your rear suspension is adjustable, you should be good to go.

 

Hey Chaz...My 18 in. tire is only one in. taller over all then my 16 in. tire. And I have mine lowered 2 1/2 inches with no issues at all. So you are only gainning 1/2 inch overall. As long as it is going to fit side to side, I would say go for it.

As for your wires, they should be ran inside a rubber hose under your fender(unlike Anibusss's bike and my old fender which were just clipped in and dangling).

I say go for it!