Overview:
GBP/JPY is consolidating with bullish bias. The rate is supported by buoyant EUR/USD and USD/JPY currency pairs; demand from Japan importers. But GBP/JPY gains are tempered by Japan exporter sales; receding investor risk appetite. Daily chart is mixed as stochastics is rising from oversold, but MACD is still bearish.
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 159.25 and the second target at 159.55. In alternative scenario, if the price moves below its pivot point, short positions are recommended with the first target at 157.85, the breach of this target will move the pair further downwards and one may expect the second target at 157.45. The pivot point stands at 158.3.
Resistance levels:
159.25
159.55
156
Support levels:
157.85
157.45
157
