Overview:
GBP/JPY is expected to trade with risks skewed higher. It is supported by the improved investor risk appetite and demand from Japan importers. But GBP/JPY gains are tempered by the Japan exporter sales. Daily chart is mixed as MACD is bullish, but stochastics is in bearish mode, five and 15-day moving averages are meandering sideways.
Trading recommendation:
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 far as the price is above its pivot point, a long position is recommended with the first target at 173 and the second target at 173.30. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 171.75. A breach of this target will push the pair further downwards and one may expect the second target at 171.40. The pivot point is at 172.10.
Resistance levels:
173
173.30
173.50
Support levels:
171.75
171.40
171
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