Overview:
GBP/JPY is expected to trade in a lower range. It is weighed by the increased investor risk aversion and Japan's exports sales. But EUR/JPY losses are tempered by the demand from the Japanese importers and loose BOJ's monetary policy. Daily chart is mixed as MACD is bullish, 5- and 15-day moving averages are advancing, but stochastics is turning bearish at overbought 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. Short position is recommended with the first target at 170. A breach of this target will move the pair further downwards to 169.35. The pivot point stands at 171.5. 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 172 and the second target at 172.9.
Resistance levels:
172
172.90
173.60
Support levels:
170
169.35
168.75
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