Overview:
GBP/JPY is expected to trade with risks skewed lower. It is undermined by the diminished investor risk appetite, Japan's export sales, and the weak EUR sentiment. But GBP/JPY losses are tempered by the demand from Japanese importers. The daily chart is mixed as stochastics is in a bullish mode, but five-day moving average is still below 15-day MA and is declining.
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 170.70. A break of this target will move the pair further downwards to 170.20. The pivot point stands at 171.75. 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 172.65 and the second target at 173.30.
Resistance levels:
172.65
173.30
173.75
Support levels:
170.70
170.20
169.85
