Overview:
GBP/JPY is expected to consolidate with bearish bias. It is undermined by the weak euro sentiment and Japan exporter sales. But GBP/JPY losses are tempered by the demand from Japan importers. Daily chart is negative-biased as MACD and stochastics are bearish, five-day moving average is below 15-day MA and is declining.
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 171.75. A breach of this target will move the pair further downwards to 171.40. The pivot point stands at 172.50. In case the price moves in the opposite direction and bounces back from support level, and then it 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 173 and the second target at 0.8805173.30.
Resistance levels:
173
173.30
173.50
Support levels:
171.75
171.40
171
