Overview:
GBP/JPY is trading with risks skewed higher. It is supported by positive investor risk appetite, demand from Japan importers, higher prospects of Japanese corporate tax cut. But GBP/JPY gains are tempered by Japan exporter sales, positions adjustment before weekend. Daily chart is mixed as MACD is bullish, but stochastics is in bearish mode.
Trading recommendations:
The pair is trading above its pivot point. It is likely to trade in a higher range as far as it remains above its pivot point. As far as the price is above its pivot point, a long position is recommended with the first target at 159.1 and the second target at 159.45. In alternative scenario, if the price moves below its pivot points short positions are recommended with the first target at 157.9. The breach of this target will move the pair further downwards and one may expect the second target at 157.25. The pivot point stands at 158.1.
Resistance levels:
159.1
159.45
159.8
Support levels:
157.9
157.25
156.75
