Overview:
GBP/JPY is trading in lower range. The rate is undermined by weak USD/JPY tone as market participants unwind short-yen positions; Japan exporter sales. But GBP/JPY losses tempered by demand from Japan importers; Bank of Japan's aggressive easing measures to help reach its 2% inflation target. Daily chart is mixed as five-day moving average is above 15-day MA and advancing; but MACD is in bearish mode, stochastics is turning bearish.
Trading recommendations:
The pair is trading below its pivot point. The pair is likely to trade in lower range as far as it remains below its pivot point. Short position is recommended with the first target at 152.6 in view, breach of this target will move further the pair downward and you should expect the second target at 152. Pivot point stands at 153.6. In case the price moves in opposite direction and returns from its support and moves above its pivot point then trading in higher range is the most favorable and buy position is recommended above its pivot with the first target at 154.2 and the second target at 154.7.
Support levels:
R1 - 152.6
R2 - 152
R3 - 151.5
Resistance levels:
S1 - 154.2
S2 - 154.7
S3 - 155.25
