Overview:
GBP/JPY is expected to trade in higher range. It is supported by the positive risk sentiment and demand from the Japanese importers. But GBP/JPY gains are tempered by the Japanese exports sales, reduced expectations of further easing from the Bank of Japan and ECB officials' jawboning against the euro strength. Daily chart is still negative-biased as MACD and stochastics are in bearish mode.
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 171.05 and the second target at 172.10. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 169.10. A breach of this target will push the pair further downwards and one may expect the second target at 168.70. The pivot point is at 169.45.
Resistance levels:
171.05
172.10
172.55
Support levels:
169.10
168.70
168.35
