Overview:
GBP/JPY is expected to range-trade undermined by reduced investor risk appetite and Japan exporter sales. But GBP/JPY downside limited by weak yen sentiment and demand from Japan importers. Daily chart is still positive-biased as MACD is bullish; stochastics stays elevated at overbought, five-day moving average 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 170 and the second target at 170.5. In alternative scenario, if the price moves below its pivot point, short positions are recommended with the first target at 166.7, the breach of this target will move the pair further downwards and one may expect the second target at 165.9. The pivot point stands at 167.8.
Resistance levels:
170
170.5
171
Support levels:
166.7
165.9
165.25
