Overview:
GBP/JPY to trade with risks skewed higher. It is supported by the positive investor risk appetite and demand from the Japanese importers. But GBP/JPY gains are tempered by Japan's exporter sales and soft USD/JPY undertone. Daily chart is mixed as MACD is bullish, but stochastics is neutral.
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 173.45 and the second target at 173.85. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 172.10. 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 172.35.
Resistance levels:
173.45
173.85
174.25
Support levels:
172.10
171.85
171.50
