Overview:
GBP/JPY is expected to trade with risks skewed lower.It is undermined by the increased investor risk aversion and Japan exporter sales. But GBP/JPY losses are tempered by the positive euro sentiment and demand from Japan importers. Daily chart is mixed as MACD is bearish, 5 and 15 day moving averages are falling, but stochastics is bullish near oversold zone.
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 169.10 in mind. A breach of this target will move the pair further downwards to 168.5. The pivot point stands at 170.5. In case the price moves in the opposite direction, bounces back from support, and moves above its pivot point, the price is most favourably expected to move further to the upside. In that scenario a long position is recommended with the first target at 171.65 and the second target at 172.4.
Resistance levels:
171.65
172.4
173
Support levels:
169.10
168.5
168