Overview:
GBP/JPY is expected to consolidate in a higher range as markets await the Federal Reserve interest rate announcement. It is supported by the improved investor risk appetite and demand from the Japanese importers. But GBP/JPY gains are tempered by Japan's 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 172.55. A breach of this target will move the pair further downwards to 171.85. The pivot point stands at 17.80. In case the price moves in the opposite direction and bounces back from the 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 174.25 and the second target at 174.85.
Resistance levels:
174.26
174.85
175.35
Support levels:
172.55
171.85
171.15
