Overview:
GBP/JPY is trading with bullish bias. The rate is underpinned by positive investor risk sentiment; demand from Japan importers. But GBP/JPY gains are tempered by Japan exporter sales. Daily chart is positive-biased as MACD is bullish, stochastics is reverting to bullish mode at overbought.
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 171.1 and the second target at 171.8. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 168.35 The breach of this target will move the pair further downwards and one may expect the second target at 167.45. The pivot point stands at 169.3.
Resistance levels:
171.1
171.8
172.5
Support levels:
168.35
167.45
166.55
