Overview:
GBP/JPY is trading with risks skewed lower. The rate is undermined by flows to safe-haven yen as investors turn jittery about prospects of a sooner-than-expected cut in stimulus measures by the Federal Reserve; euro sales from Japan exporters. But GBP/JPY losses tempered by Bank of Japan's aggressive easing measures to help reach its 2% inflation target; euro demand from Japan importers. Daily chart is negative-biased as MACD and tochastics in bearish mode; although inside-day-range pattern was completed on Friday.
Trading recommendations:
The pair is trading below its pivot point. The pair is likely to trade in lower range as far as it remains below its pivot point. Short position is recommended with the first target at 152.3 in view, breach of this target will move further the pair downward and you should expect the second target at 151.9. Pivot point stands at 153.25. In case the price moves in opposite direction and returns from its support and moves above its pivot point then trading in higher range is the most favorable and buy position is recommended above its pivot with the first target at 153.7 and the second target at 154.15.
Resistance levels:
R1 - 153.7
R2 - 154.15
R3 - 154.65
Support levels:
S1 - 152.3
S2 - 151.9
S3 - 151.55