Overview:
GBP/JPY is consolidating after hitting a four-day high of 135.19 Tuesday, as markets await U.S. FOMC monetary policy decision. EUR/JPY is supported by positive risk sentiment; demand from Japan importers. But GBP/JPY upside is limited by Japan exporter sales. Daily chart is positive-biased as bullish outside-day-range pattern was completed Tuesday, MACD is bullish, stochastics is reverting to positive mode at overbought.
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 157.9 and the second target at 158.25. In alternative scenario, if the price moves below its pivot point, short positions are recommended with the first target at 156.55, the breach of this target will move the pair further downwards and one may expect the second target at 156.15. The pivot point stands at 157.
Resistance levels:
157.9
158.25
158.7
Support levels:
156.55
156.15
155.75
