OvervieW:
GBP/JPY is trading in a higher range. It is supported by positive investor risk appetite, weak yen sentiment, demand from Japan importers. But GBP/JPY gains are tempered by Japan exporter sales, positions adjustment before weekend. Daily chart is positive-biased as stochastics is bullish; MACD is staging bullish crossover against its exponential moving average; the five-day moving average is rising above the 15-day MA.
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 161.8 and the second target at 162.2. In alternative scenario, if the price moves below its pivot point, short positions are recommended with the first target at 159.6, the breach of this target will move the pair further downwards and one may expect the second target at 159. The pivot point stands at 160.4.
Resistance levels:
161.8
162.25
162.6
Support levels:
159.6
159
158.55
