Overview:
GBP/JPY is consolidating with bullish bias. The rate is supported by positive investor risk appetite; soft 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 MACD is bullish, stochastics stays elevated 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 164.3 and the second target at 164.85. In alternative scenario, if the price moves below its pivot point, short positions are recommended with the first target at 162.45, the breach of this target will move the pair further downwards and one may expect the second target at 161.6. The pivot point stands at 163.25.
Resistance levels:
164.3
164.8
165
Support levels:
162.45
161.6
161
