Overview:
GBP/JPY is consolidating with bullish bias. The rate is supported by weak yen sentiment; buoyant EUR/USD undertone; demand from Japan importers. But GBP/JPY gains are tempered by Japan exporter sales. Daily chart is positive-biased as bullish outside-day-range pattern was completed on Tuesday; MACD and stochastics are bullish, although latter is at overbought; five-day moving average is above 15-day MA and 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 161.8 and the second target at 162.3. 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
162.3
162.6
Support levels:
159.6
159
158.55
