Overview:
GBP/JPY is consolidating in a higher range as markets await the U.S. FOMC interest rate decision. GBP/JPY is undermined by decreased investor risk appetite; Japan exporter sales. But EUR/JPY losses tempered by demand from Japan importers. Daily chart is negative-biased as stochastics is falling from overbought zone; MACD is staging bearish crossover against its exponential moving average.
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 169.35 and the second target at 169.85. 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 167.45.
Resistance levels:
169.35
169.85
170.05
Support levels:
166.75
165.8
164.85
