Overview:
GBP/JPY is trading with risks skewed lower. The rate is undermined by doubts over feasibility of Bank of Japan's policy to achieve 2% inflation after recent volatility in JGB market; euro sales from Japan exporters. But GBP/JPY losses tempered by euro demand from Japan importers. Daily chart is negative-biased as MACD and stochastics are in bearish mode; five-day moving average is staging bearish crossover against 15-day MA.
Trading recommendations:
The pair is trading above its pivot point. It 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, trading in higher range is most favorable and buy position is recommended above its pivot with the first target at 154.8 and the second target at 155.55. You should keep in view short position below the pivot keep of the first target at 152.8, breach of this target will move the pair downward further and expect the second target at 152.3. The pivot point stands at 153.25.
Resistance levels:
R1 - 154.8
R2 - 155.55
R3 - 156
Support levels:
S1 - 152.8
S2 - 152.3
S3 - 152
