Fundamental overview:
GBP/JPY is expected to trade in a higher range. It is trading with lower liquidity as the US financial floors are closed for the Easter holiday and market is waiting for Non Farm payroll data due to come out later today. It is undermined by diminished investor risk appetite, weaker GBP/USD undertone, and Japan exporter sales. But GBP/JPY losses are tempered by the demand from Japan importers and positions adjustment ahead of weekend.
Technical comment:
The daily chart is mixed as the MACD is bullish but stochastics is turning neutral.
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 holds above its pivot point, long positions are recommended with the first target at 177.75 and the second target at 178.25. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 176.85. A break of this target is likely to push the pair further downwards, and one may expect the second target at 176.45. The pivot point is at 177.15.
Resistance levels:
177.75
178.25
179.30
Support levels:
176.85
176.45
176
