Overview:
GBP/JPY is expected to trade in a range. It is supported by the reduced risk aversion and demand from Japanese importers. But GBP/JPY upside is limited by Japanese export sales and the subdued EUR/USD undertone. The daily chart is still positive-biased as MACD and stochastics are in a bullish mode, five-day moving average is above 15-day MA and is advancing.
Trading recommendations:
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 long as the price is keeping above its pivot point, a long position is recommended with the first target at 173.75 and the second target at 174.10. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 172.30. A break of this target would push the pair further downwards and one may expect the second target at 171.90. The pivot point is at 172.90.
Resistance levels:
173.75
174.10
174.45
Support levels:
172.30
171.90
171.65
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