FX.co ★ GBP/JPY: Upside (October 28, 2013)

Overview:
GBP/JPY is trading in higher range. The rate is supported by positive risk sentiment; demand from Japan importers. But GBP/JPY gains are tempered by Japan exporter sales. Daily chart is mixed as MACD is bullish, five- and 15-day moving averages are advancing; but stochastics is bearish at overbought.

Trading recommendations:

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 158.25 and the second target at 158.8. In alternative scenario, if the price moves below its pivot point, short positions are recommended with the first target at 156.9, the breach of this target will move the pair further downwards and one may expect the second target at 156.55. The pivot point stands at 157.3.

Resistance levels:
158.25
158.8
159.35

Support levels:
156.9
156.55
156.15