Overview:
GBP/JPY is trading in a higher range after hitting the high 173.9. The gains of the GBP/JPY pair are tempered by Japan exporter sales. The immediate trend remains up and the momentum is strong. Daily chart is positive-biased as MACD and Stochastic are bullish, stochastics is reverting to bullish due to oversold.
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 170.45 and the second target at 171.1 in mind. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 169.35 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 169.7.
Resistance levels:
173.9
174.3
174.75
Support levels:
172
171.4
170.8
