Overview:
GBP/JPY is trading in higher range with expectation to remain on upside. The rate is undermined by weak euro sentiment; increased risk aversion; Japan exporter sales. But GBP/JPY losses are tempered by demand from Japan importers. Daily chart is mixed as MACD is bullish; but stochastics is turning bearish at overbought, bearish outside-day-range pattern was completed on Wednesday.
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 163.5 and the second target at 164.3. In alternative scenario, if the price moves below its pivot point, short positions are recommended with the first target at 160.95, the breach of this target will move the pair further downwards and one may expect the second target at 160.4. The pivot point stands at 161.6.
Resistance levels:
163.5
164.3
165
Support levels:
160.95
160.4
159.6
