Overview:
GBP/JPY is trading with risks skewed higher. The rate is supported by firm USD/JPY undertone; Bank of Japan's aggressive easing measures to help reach its 2% inflation target; euro demand from Japan importers. But GBP/JPY gains tempered by Japan exporter sales; weak euro sentiment. Daily chart is mixed as MACD is bearish, but stochastics is in bullish mode, five-day moving average is above 15-day MA and advancing.
Trading recommendations:
The pair is trading above its pivot point. The pair is likely to trade in higher range as far as it remains above its pivot point. As far as the price is above its pivot point, it will be most favourably to trade in higher range and buy position is recommended above its pivot with the first target at 154.8 and the second target at 155.35. You should keep in view short position below the pivot keep of the first target at 153.3, breach of this target will move the pair downward further and expect the second target at 153. The pivot point stands at 153.7.
Resistance levels:
R1 - 154.8
R2 - 155.35
R3 - 155.75
Support levels:
S1 - 153.3
S2 - 153
S3 - 152.6