Overview:
GBP/JPY is trading in a range. It is supported by improved euro sentiment, waning investor risk aversion, demand from Japan importers. But GBP/JPY upside is limited by Japan exporter sales. Daily chart is mixed as MACD is bearish, but stochastics is turning bullish in oversold 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. A short position is recommended with the first target at 155.1 in view; a breach of this target will move the pair further downwards to 154.6. The pivot point stands at 156.1. In case the price moves in the opposite direction, bounces back from support, and moves above its pivot point, then the price is most favorably expected to move further to the upside, In that scenario a long position is recommended with the first target at 156.65 and the second target at 157.35.
Support levels: 155.1
154.6
154
Resistance levels:
156.65
157.35
158
