Overview:
GBP/JPY is to consolidate with bullish bias underpinned by weak yen sentiment, improved euro sentiment on higher-than-expected German inflation data, demand from Japan importers. But GBP/JPY gains 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 167.95 and the second target at 169.15. In alternative scenario, if the price moves below its pivot point, short positions are recommended with the first target at 165.25, the breach of this target will move the pair further downwards and one may expect the second target at 164.35. The pivot point stands at 165.9.
Resistance levels:
167.95
169.15
169.75
Support levels:
165.25
164.35
163.7
