FX.co ★ GBPJPY: bullish bias (Nov 6, 2013)

Overview:
GBP/JPY is consolidating with billish bias. It is undermined by weak euro sentiment; diminished investor risk appetite; Japan exporter sales. But EUR/JPY losses are tempered by demand from Japan importers. Daily chart is negative-biased as MACD and stochastics are bearish, although the latter is at oversold; the 5-day moving average is below the 15-day MA and declining.

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 158.9 and the second target at 159.35. In alternative scenario, if the price moves below its pivot point, short positions are recommended with the first target at 157.2, the breach of this target will move the pair further downwards and one may expect the second target at 156.65. The pivot point stands at 157.65.

Resistance levels:
158.9
159.35
159.75
Support levels:

157.2
156.65
156.15