Overview:
GBP/JPY is expected to trade with risks skewed lower. It is undermined by soft EUR/USD undertone and the Japanese exports sales. But EUR/JPY losses are tempered by the positive risk appetite, demand from the Japanese importers and loose Bank of Japan monetary policy. Daily chart is still positive-biased as MACD stochastics are in bullish mode, 5-day moving average is above 15-day MA and is advancing.
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 171.65. A breach of this target will move the pair further downwards to 170.90. The pivot point stands at 173.15. In case the price moves in the opposite direction and bounces back from support level, and then it 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 173.60 and the second target at 174.20.
Resistance levels:
173.60
174.20
174.50
Support levels:
171.65
170.90
170.30
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For detail explanation and best discovery on market trends you may visit via Technical analysis of GBPJPY for April 3, 2014 . Thanks for your support on Technical analysis of GBPJPY for April 3, 2014
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