Overview:
GBP/JPY is trading with risks skewed higher. It is supported by demand from Japan's importers; positive investor risk appetite. But GBP/JPY gains are tempered by Japan's exporter sales; positions adjustment before the weekend. Daily chart is mixed as MACD is bullish, but stochastics is bearish at overbought, the inside-day-range pattern was completed Thursday.
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 158.25. In alternative scenario, if the price moves below its pivot point, short positions are recommended with the first target at 156.55, the breach of this target will move the pair further downwards and one may expect the second target at 156.15. The pivot point stands at 156.9.
Resistance levels:
157.9
158.25
158.7
Support levels:
156.55
156.15
155.75