Overview:
GBP/JPY is expected to consolidate with a bearish bias. It is supported by the buoyant USD/JPY undertone and demand from Japanese importers. But GBP/JPY gains are tempered by Japan's export sales. The daily chart is positive-biased as stochastics is rising from the oversold zone, MACD turned bullish, bullish parabolic stop-and-reverse signal was hit on Wednesday.
Trading recommendations:
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 173.15. A break of this target will move the pair further downwards to 172.85. The pivot point stands at 174. In case the price moves in the opposite direction and bounces back from the support level, then it will 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 174.20 and the second target at 174.55.
Resistance levels:
174.20
174.55
174.95
Support levels:
173.15
172.85
172.45
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