Overview:
GBP/JPY is expected to consolidate with bearish bias. It is undermined by the weak EUR/USD undertone and Japan exporter sales. But GBP/JPY losses are tempered by the demand from Japan importers and improved investor risk tolerance. It is also affected by the positions adjustment of traders before weekend. Daily chart is negative-biased as MACD is bearish, stochastics stays suppressed at oversold zone; five and 15-day moving averages are declining.
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 167.25 in mind. A breach of this target will move the pair further downwards to 166.6. The pivot point stands at 169.8. In case the price moves in the opposite direction, bounces back from support, and moves above its pivot point, the price is most favourably expected to move further to the upside. In that scenario, a long position is recommended with the first target at 170.9 and the second target at 171.65.
Resistance levels:
170.9
171.65
172.40
Support levels:
167.25
166.6
166
