Overview:
GBP/JPY is trading with risks skewed lower. The rate is undermined by flows to haven yen amid increased risk aversion; Japan exporter sales; positions adjustment before weekend. But GBP/JPY losses are tempered by demand from Japan importers. Daily chart is mixed as MACD is bearish; but stochastics is in bullish mode, bullish parabolic stop-and-reverse signal was hit on Thursday.
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 151.95 and the second target at 152.4. You should keep in view short position below the pivot keep of the first target at 149.35, breach of this target will move the pair downward further and one may expect the second target at 148.85. The pivot point stands at 150.3.
Resistance levels:
R1 - 151.95
R2 - 152.4
R3 - 153
Support levels:
S1 - 149.35
S2 - 148.85
S3 - 148.25
