Overview:
The GBP/JPY is to range trade with risks skewed lower as markets await 11:45 GMT European Central Bank's interest rate announcement. The GBP/JPY is undermined by increased investor risk aversion; Japan exporter sales. But the EUR/JPY losses are tempered by the Bank of Japan's aggressive easing measures to help reach its 2% inflation target; demand from Japan importers. Daily chart mixed as the MACD in bearish mode but stochastics neutral.
Trading recommendations:
The pair is trading above its pivot point. The pair is likely to trade in higher range as far as it remains above its pivot point. As far as the price is above its pivot point, it will be most favourably to trade in higher range and buy position is recommended above its pivot with the first target at 152.2 and the second target at 152.75. You should keep in view short position below the pivot keep of the first target at 150.35, breach of this target will move the pair downward further and expect the second target at 149.8. The pivot point stands at 150.8.
Support levels:
S1 - 150.35
S2 - 149.8
S3 - 149.35
Resistance levels:
R1 - 152.2
R2 - 152.75
R3 - 153.25
