Overview:
GBP/JPY is consolidating with bullish bias. It is undermined by increased investor risk aversion, Japan exporter sales. But GBP/JPY losses are tempered by demand from Japan importers. Daily chart is negative-biased as MACD and stochastics are bearish; five-day moving average is below 15-day MA and declining.
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 156.90 and the second target at 157.35. In alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 155.10 , a breach of this target will move the pair further downwards and one may expect the second target at 154.60. The pivot point stands at 156.3.
Support levels:
155.10
154.60
154
Resistance levels:
156.90
157.35
157.70
