Overview:
GBP/JPY is expected to trade with risks skewed higher. It is supported by the positive investor risk sentiment, demand from Japan importers and loose Bank of Japan's monetary policy. But the EUR/JPY gains are tempered by the Japan exporter sales. The daily chart is mixed as MACD and stochastics are bearish, but five-day moving average is meandering sideways.
Trading recommendation:
The pair is trading above its pivot point. It is likely to trade in a higher range as far as it remains above its pivot point. As far as the price is above its pivot point, a long position is recommended with the first target at 170 and the second target at 170.5. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 168.30. A breach of this target will push the pair further downwards and one may expect the second target at 168. The pivot point is at 168.80.
Resistance levels:
170
170.5
180
Support levels:
168.30
168
167.70
