Overview:
GBP/JPY is expected to consolidate after hitting three-week high. GBP/JPY is supported by the improved risk appetite and demand from Japan importers. But GBP/JPY gains are tempered by the Japan exporter sales. Daily chart is still positive-biased as MACD and stochastics are bullish, five-day moving average is above 15-day MA and is advancing.
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 172.30 and the second target at 172.75. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 170.70. A breach of this target will push the pair further downwards and one may expect the second target at 170.20. The pivot point is at 171.20.
Resistance levels:
172.30
172.75
173.15
Support levels:
170.70
170.20
168.75