Overview:
GBP/JPY is to trade in a lower range. It was ndermined by the weak EUR/USD andJapan's exports. But GBP/JPY losses were tempered by the demand among Japan's importers. Daily chart is negative-biased as MACD & stochastics are bearish.
Trading recommendation:
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 172.75 and the second target at 173.8 in mind. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 170.4. The breach of this target will move the pair further downwards and one may expect the second target at 169.9. The pivot point stands at 171.05.
Resistance levels:
172.75
173.8
174.85
Support levels:
170.4
169.9
169.45
