Overview:
GBP/JPY is trading with bullish bias. The rate is supported by positive risk sentiment; demand from Japan importers. But EUR/JPY gains are tempered by Japan exporter sales. Daily chart is still negative-biased as MACD and stochastics are in bearish mode; five-day moving average is below 15-day MA and declining.
Trading recommendation:
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 172.75 and the second target at 173.8 in mind. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 170.4. The breach of this target will move the pair further downwards and one may expect the second target at 169.35. The pivot point stands at 171.15.
Resistance levels:
172.75
173.8
174.85
Support levels:
170.4
169.35
168.35