Overview:
GBP/JPY is expected to trade in lower range. It is undermined by the increased investor risk aversion as Russia-Ukraine tensions escalate and Japan exporter sales. But EUR/JPY losses are tempered by the diminished expectations for ECB rate cut on Thursday after higher-than-expected euro-zone February flash CPI and demand from Japan importers and loose BOJ's monetary policy. Daily chart is mixed as stochastics is falling from overbought zone, but MACD is in bullish mode.
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 169. A breach of this target will move the pair further downwards to 168.35. The pivot point stands at 170.1. In case the price moves in the opposite direction, bounces back from support level, and then moves above its pivot point, it is likely to move further to the upside. In that scenario, a long position is recommended with the first target at 170.6 and the second target at 171.2.
Resistance levels:
170.6
171.2
171.6
Support levels:
169
168.35
167.9
