Overview:
GBP/JPY is trading in higher range after rebounding from its support. The rate is undermined by weaker euro sentiment; diminished risk appetite; profit-taking on euro-longs ahead of Wednesday's FOMC decision; Japan exporter sales. But EUR/JPY losses are tempered by demand from Japan importers.
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 168.8 and the second target at 169.35. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 166.75. The breach of this target will move the pair further downwards and one may expect the second target at 165.8. The pivot point stands at 167.25.
Resistance levels:
168.8
169.35
170
Support levels:
166.75
165.8
164.85
