Overview:
GBP/JPY is expected to range-trade. It is supported by the positive investor risk appetite and demand from Japan importers. But GBP/JPY upside is limited by the Japan exporter sales. Daily chart is mixed as MACD is bearish, but stochastics is rising from oversold zone.
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. A breach of this target will move the pair further downwards to 170.60. The pivot point stands at 171.95. 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 172.35 and the second target at 172.70.
Resistance levels:
172.35
172.70
173
Support levels:
171
170.60
170.20
