Overview:
GBP/JPY is expected to trade in a lower range. It is supported by the buoyant EUR/USD undertone, demand from the Japanese importers and Bank of Japan's extension and expansion of two bank-lending programs. But the GBP/JPY gains are tempered by Japan's exports sales. Daily chart is positive-biased as the MACD and stochastics are bullish.
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. Short position is recommended with the first target at 169. A breach of this target will move the pair further downwards to 168.25. The pivot point stands at 170.10. In case the price moves in the opposite direction, bounces back from support level, and then 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 171.30 and the second target at 172.15.
Resistance levels:
171.30
172.15
173
Support levels:
169
168.25
167.1
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