Fundamental Overview:
GBP/JPY is expected to trade in a lower range. It is weighed by the increased investor risk aversion. Downside movement is dented by the GBP demand on buoyant GBP/AUD, GBP/NZD, GBP/CAD crosses, weaker USD sentiment and sterling demand on soft EUR/GBP cross.
Technical Comment:
The daily chart is mixed as MACD is bullish, five day moving average is above 15-day MA and is advancing but stochastics is bearish in the overbought 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 176.75. A break of this target will move the pair further downwards to 175.80. The pivot point stands at 178.75. 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 179.15 and the second target at 179.90.
Resistance levels:
179.15
179.90
180.35
Support levels:
176.75
175.80
175.05
