FX.co ★ GBP/JPY: Rebound expected

Overview:
GBP/JPY is trading in higher range. The rate is undermined by JPY demand on soft USD/JPY; buy-yen orders from Japan exporters. But GBP/JPY losses tempered by improved euro sentiment; sell-yen orders from Japan importers; Bank of Japan's aggressive easing measures to help reach its 2% inflation target. Daily chart is negative-biased as stochastics is falling from overbought; MACD has staged bearish crossover against its exponential moving average; bearish parabolic stop-and-reverse sign and five-day moving average are falling below 15-day MA.

Trading recommendations:
The pair is trading above its pivot point. The pair is likely to trade in higher range as far as it remains above its pivot point. As far as the price is above its pivot point, it will be most favorably to trade in higher range and buy position is recommended above its pivot with the first target at 152.3 and the second target at 152.8. You should keep in view short position below the pivot keep of the first target at 150.4, breach of this target will move the pair downward further and expect the second target at 149.9. Pivot point stands at 151.1.

Resistance levels:
R1 - 152.3
R2 - 152.8
R3 - 153.25

Support levels:
S1 - 150.4
S2 - 149.9
S3 - 149.4