Overview:
GBP/JPY is trading with risks skewed lower. It is undermined by increased investor risk aversion; Japan exporter sales. But GBP/JPY losses are tempered by positive euro sentiment; demand from Japan importers. Daily chart is still bearish-biased as MACD is bearish, stochastics stays elevated in the overbought area; the 5- & 15-day moving averages are advancing.
Trading recommendation:
The pair is trading below its pivot point. It is likely to trade in a lower range as far as it remains below its pivot point. A short position is recommended with the first target at 167.75 in view; a breach of this target will move the pair further downwards to 167.2. The pivot point stands at 169.35. In case the price moves in the opposite direction, bounces back from support, and moves above its pivot point, the price is most favorably expected to move further to the upside. In that scenario a long position is recommended with the first target at 170.05 and the second target at 170.8.
Resistance levels:
167.75
167.2
166.85
Support levels:
170.05
170.8
171.35
