Overview:
GBP/JPY is expected to trade with risks skewed higher.It is supported by the positive investor risk appetite and demand from Japan importers. But GBP/JPY gains are tempered by the Japan exporter sales and soft EUR/USD undertone. Daily chart is mixed as stochastics is turning bullish but five-day moving average is still below 15-day MA and is declining.
Trading recommendations:
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 long as the price is keeping above its pivot point, a long position is recommended with the first target at 170.70 and the second target at 170.20. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 172. A break of this target would push the pair further downwards and one may expect the second target at 172.85. The pivot point is at 171.15.
Resistance levels:
172
172.65
173
Support levels:
170.70
170.20
169.85
