Overview:
GBP/JPY is expected to trade in a lower range undermined by weak EUR/USD and Japan's exports sales. But GBP/JPY losses are tempered by the demand from the Japanese importers. Daily chart is negative-biased as MACD and stochastics are 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. Short position is recommended with the first target at 163.85 in mind. A breach of this target will move the pair further downwards to 162.95. The pivot point stands at 166. In case the price moves in the opposite direction, bounces back from support, and then moves above its pivot point, it is most favourably expected to move further to the upside. In that scenario, a long position is recommended with the first target at 168.2 and the second target at 169.7.
Resistance levels:
167.5
168.2
168.9
Support levels:
163.85
162.95
162
