Overview:
The GBP/JPY is expected to trade with risks skewed lower. It is undermined by the weak EUR/USD undertone. But the EUR/JPY downside is limited by the improved risk appetite and loose BOJ's monetary policy and positions' adjustment before the weekend. Daily chart is mixed as the MACD is negative biased and stochastics is turned 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 168. A breach of this target will move the pair further downwards to 167.70. The pivot point stands at 169.20. 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 168 and the second target at 167.70.
Resistance levels:
169.70
170
170.50
Support levels:
168
167.70
167.10
