Overview:
GBP/JPY is trading with Bullish Bias. It is undermined by increased investor risk aversion; Japan exporter sales. But GBP/JPY losses are tempered by demand from Japan importers. Daily chart is mixed as stochastics is bullish; but the bearish outside-day-range pattern was completed Tuesday.
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 far as the price is above its pivot point, a long position is recommended with the first target at 157.9 and the second target at 158.5. In alternative scenario, if the price moves below its pivot points short positions are recommended with the first target at 155.45, the breach of this target will move the pair further downwards and one may expect the second target at 154.65. The pivot point stands at 156.5.
Resistance levels:
157.9
158.5
159.5
Support levels:
155.45
154.65
154