Overview:
GBP/JPY is trading in higher range. It is underpinned by buoyant USD/JPY; demand from Japan importers. But GBP/JPY upside is limited by Japan exporter sales; positions adjustment before weekend. Daily chart is still positive-biased as MACD and stochastics are bullish, although the latter is in overbought area; the five- and 15-day moving averages are 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 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 169.3 The breach of this target will move the pair further downwards and one may expect the second target at 168.35. The pivot point stands at 169.8.
Resistance levels:
171.1
171.8
172.5
Support levels:
169.3
168.35
167.45
