Overview:
GBP/JPY is expected to consolidate with bullish bias.It is supported by the positive risk appetite and demand from Japan importers. But EUR/JPY gains are tempered by the 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 is 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 173.25 and the second target at 173.90. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 171.85. A breach of this target will push the pair further downwards and one may expect the second target at 171.40. The pivot point is at 172.30.
Resistance levels:
173.25
173.90
174.75
Support levels:
171.85
171.40
171