FX.co ★ GBP/JPY bearish bias (July 5, 2013)

Overview:
GBP/JPY--to trade with risks skewed lower. Undermined by weaker euro sentiment after ECB Thursday offered dovish forward guidance on interest rates, and on political turmoil in Portugal; Japan exporter sales. But GBP/JPY losses tempered by positive risk sentiment; demand from Japan importers; positions adjustment before weekend. Daily chart mixed as MACD bullish; but stochastics bearish at overbought, inside-day-range pattern completed Thursday.

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 149.5 in view, breach of this target will move further the pair downward and you should expect the second target at 149.15 . Pivot point stands at 150.65. 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 151.25 and the second target at 151.65 .

Support Levels:
S1 - 149.5
S2 - 149.15
S3 - 148.75

Resistance Levels:
R1 - 151.25
R2 - 151.65
R3 - 152