Overview:
GBP/JPY is trading in a lower range. it is undermined by diminished investor risk appetite, Japan exporter sales. But GBP/JPY losses are tempered by demand from Japan importers. Daily chart is negative-biased as MACD and stochastics are in bearish mode.
Trading recommendation:
The pair is trading below its pivot point. It is likely to trade in a lower range as far as it remains below its pivot point. A short position is recommended with the first target at 157.7 in view; a breach of this target will move the pair further downwards to 157.3. The pivot point stands at 158.85. In case the price moves in the opposite direction, bounces back from support, and moves above its pivot point, then the price is most favorably expected to move further to the upside, In that scenario a long position is recommended with the first target at 159.25 and the second target at 159.6.
Support levels:
157.7
157.3
156.75
Resistance levels:
159.25
159.6
160.35
