FX.co ★ GBP/JPY: Downward

Overview:
GBP/JPY is in range-trade. The rate is supported by buoyant USD/JPY undertone: euro demand from Japan importers; BOJ's aggressive easing measures to help achieve its 2% inflation target. But GBP/JPY upside limited by soft EUR/USD; euro sales from Japan exporters. Daily chart is still negative-biased as MACD and stochastics are in bearish mode; five-day moving average has staged bearish crossover against 15-day MA.

Trading recommendations:

The pair is trading below its pivot point. The pair is likely to trade in lower range as far as it remains below its pivot point. Short position is recommended with the first target at 152.3 in view, breach of this target will move further the pair downward and you should expect the second target at 151.7. Pivot point stands at 154. In case the price moves in opposite direction and returns from its support and moves above its pivot point, then trading in higher range is the most favorable and buy position is recommended above its pivot with the first target at 154.65 and the second target at 155.55.

Resistance levels:
R1 - 154.65
R2 - 155.55
R3 - 155.85

Support levels:
S1 - 152.3
S2 - 151.7
S3 - 151.35