Overview:
GBP/JPY is expected to consolidate in lower range as markets awaits U.S. non-farm payrolls report today. GPY/JPY is underpinned by improved investor risk appetite and demand from the Japan importers. But GBP/JPY gains are tempered by Japan exporter sales and positions adjustment before weekend. Daily chart is mixed as MACD is bearish, but stochastics is bullish in oversold zone.
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 165 in mind. A breach of this target will move the pair further downwards to 163.85. The pivot point stands at 167.5. 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:
168.2
169.7
170.45
Support levels:
165
163.85
162.5
