Overview:
GBP/JPY is set to consolidate with risks skewed lower undermined by profit-taking on yen shorts ahead of the U.S. Thanksgiving holiday on Thursday and Japan exporter sales. But GBP/JPY losses are tempered by demand from the Japanese importers, soft yen sentiment amid expectations that the Bank of Japan will take additional easing measures to counter a consumption-tax rise next April. Daily chart is still positive-biased as MACD is bullish, stochastics stays elevated at overbought, five-day moving average is above 15-day MA and advancing; although inside-day-range pattern was completed Tuesday.
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 165.3 and the second target at 166. In alternative scenario, if the price moves below its pivot point, short positions are recommended with the first target at 163.25, the breach of this target will move the pair further downwards and one may expect the second target at 162.45. The pivot point stands at 164.
Resistance levels:
166.75
167.45
168
Support levels:
164.35
163.7
163
