Overview:
GBP/JPY is trading in lower range undermined by increased investor risk aversion. But GBP/JPY losses tempere by buy euro orders from Japan importers, positions adjustment before weekend. Daily chart is negative-biased as MACD & stochastics turned bearish.
Trading recommendation:
The pair is trading below its pivot point. It is likely to trade in a lower range as far as it remains below its pivot point. A short position is recommended with the first target at 170.9. A breach of this target will move the pair further downwards to 169.9. The pivot point stands at 172.75. In case the price moves in the opposite direction, it will bounce back from support and move above its pivot point. The price is most favorably expected to move further to the upside. In that scenario a long position is recommended with the first target at 173.8 and the second target at 174.9.
Resistance levels:
173.8
174.9
176
Support levels:
170.9
169.9
168.8
