Overview:
GBP/JPY is expected to consolidate in a lower range. It is supported by the weaker JPY sentiment, demand from Japanese importers, and profit-taking on short EUR positions as traders trim risk exposure before the weekend. But GBP/JPY gains are tempered by Japanese export sales. The daily chart is mixed as MACD is bearish, but bullish outside-day-range pattern was completed on Thursday; stochastics is turning bullish to the oversold zone.
Trading recommendations:
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 172.35. A break of this target will move the pair further downwards to 171.90. The pivot point stands at 173.35. In case the price moves in the opposite direction and bounces back from the support level, then it will 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 173.75 and the second target at 174.10.
Resistance levels:
173.75
174.10
174.45
Support levels:
172.35
171.90
171.65
