Overview:
GBP/JPY is expected to range-trade. It is supported by the demand from Japan importers. But GBP/JPY upside is limited by the diminished risk appetite and Japan export sales. The Daily chart is mixed as MACD is bullish, but stochastics is turned bearish at the 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 173.90. A breach of this target will move the pair further downwards to 173.30. The pivot point stands at 175.40. In case the price moves in the opposite direction and bounces back from the 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 175.80 and the second target at 176.15.
Resistance levels:
175.80
176.15
176.65
Support levels:
173.90
173.30
172.65
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