Fundamental overview:
GBP/JPY is expected to trade with a bullish bias. It is supported by the buoyant USD/JPY pair and Bank of England's chief economist Andy Haldane saying he favors keeping interest rates "lower for longer" as a weaker global economy, low inflation pressures and wage growth had forced him to reassess U.K.'s economic outlook and demand from Japanese importers. But GBP/JPY gains are tempered by Japan's export sales.
Technical comment:
Daily chart is mixed as MACD is bearish but stochastics is rising from the oversold zone, bullish parabolic stop-and-reverse signal was hit on Friday.
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 173.35 and the second target at 174. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 170.20. A break of this target would push the pair further downwards and one may expect the second target at 169.15. The pivot point is at 171.35.
Resistance levels:
173.35
174
174.25
Support levels:
170.20
169.75
169.15
