Technical analysis of GBP/JPY for January 13, 2014 Trend News

Overview:
GBP/JPY is trading in a lower range. GBP/JPY is undermined by the weak USD/JPY undertone and sell-euro orders from the Japan exporters. But EUR/JPY downside is limited by the buy-euro orders from Japan importers. Daily chart is negative-biased as MACD is bearish,but stochastics stays suppressed near oversold zone.

Trading recommendation:

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. A short position is recommended with the first target at 170.85 in mind. A breach of this target will move the pair further downwards to 171.65. The pivot point stands at 169.65. In case the price moves in the opposite direction, bounces back from support, and moves above its pivot point, the price is most favorably expected to move further to the upside. In that scenario a long position is recommended with the first target at 168.35 and the second target at 167.6.



Resistance levels:

170.85

171.65

172.45

Support levels:

168.35

167.6

167

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