Overview:
GBP/JPY is expected to trade with risks skewed higher. It is underpinned by the positive risk sentiment and demand from Japanese importers. But GBP/JPY gains are tempered by Japanese export sales. The daily chart is positive-biased as MACD and stochastics are bullish, although inside-day-range pattern was completed on Monday.
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 171.75 and the second target at 172.10. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 170.55. A break of this target would push the pair further downwards and one may expect the second target at 170.20. The pivot point is at 171.
Resistance levels:
171.75
172.65
173.30
Support levels:
170.55
170.20
169.85
