Overview:
GBP/JPY is in range-trade. The rate is supported by positive investor risk appetite; improved euro sentiment; demand from Japan importers. But GBP/JPY upside is limited by Japan exporter sales; caution ahead of Wednesday's FOMC decision. Daily chart is mixed as MACD is bullish, but stochastics turned bearish at overbought.
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 166.75 in view. A breach of this target will move the pair further downwards to 165.8. The pivot point stands at 167.8. In case the price moves in the opposite direction, bounces back from support, and moves above its pivot point, 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 168.35 and the second target at 168.8.
Resistance levels:
168.35
168.8
169.35
Support levels:
166.75
165.8
164.85