Overview:
GBP/JPY is expected to trade in a lower range. It is affected by the weak EUR sentiment, diminished investor risk appetite, and Japanese export sales. But EUR/JPY losses are tempered by the demand from Japanese importers. The daily chart is mixed as MACD is bullish, five-day moving average is above 15-day MA and is advancing, but stochastics is turned bearish in the overbought zone.
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 172.70 and the second target at 172.90. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 171.50. A break of this target would push the pair further downwards and one may expect the second target at 171.15. The pivot point is at 171.90.
Resistance levels:
172.70
172.90
173.30
Support levels:
171.50
171.15
170.75
