Overview:
GBP/JPY is expected to consolidate with bullish bias. It is supported by the positive risk appetite and demand from Japan importers. But GBP/JPY gains are tempered by the Japan exporter sales and positions adjustment before weekend. Daily chart is positive-biased as MACD and stochastics are bullish.
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 174.25 and the second target at 174.85. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 172.55. A breach of this target would push the pair further downwards and one may expect the second target at 171.85. The pivot point is at 173.
Resistance levels:
174.25
174.85
175.35
Support levels:
172.55
171.85
171.15
