Overview:
GBP/JPY is consolidating after hitting six-day high. The rate is supported by buoyant USD/JPY undertone; demand from Japan importers. But GBP/JPY gains are tempered by Japan exporter sales; weaker investor risk appetite. Daily chart is still positive-biased as MACD and stochastics are bullish, although latter is at overbought; five- and 15-day moving averages are advancing.
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
