Overview:
GBP/JPY is trading with risks skewed higher. The rate is underpinned by improved investor risk appetite; demand from Japan importers. But GBP/JPY gains are tempered by Japan exporter sales. Daily chart is mixed as stochastics is neutral, inside-day-range pattern was completed on Tuesday; but MACD histogram bars are turning positive.
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 0.938 and the second target at 0.9415. You should keep in view short position below the pivot keep of the first target at 0.924, breach of this target will move the pair downward further and expect the second target at 0.92. The pivot point stands at 0.929.
Resistance levels:
R1 - 150.5
R2 - 151
R3 - 151.5
Support levels:
S1 - 148.85
S2 - 148.25
S3 - 148
