FX.co ★ Technical analysis of GBP/JPY for March 07, 2014

Overview:

GBP/JPY is expected to consolidate with bullish bias  as markets await U.S. nonfarm payrolls report. GBP/JPY is underpinned by improved euro sentiment, positive investor risk appetite, demand from the Japan importers and loose BOJ's monetary policy. But EUR/JPY gains are tempered by the Japan exporter sales and positions adjustment before the weekend. Daily chart is  positive-biased as MACD and stochastics are bullish, five  and 15-day moving averages are advancing. 

Trading recommendation:

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 173.60 and the second target at 174.10. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 171.30. A breach of this target will push the pair further downwards and one may expect the second target at 170.50. The pivot point is at 171.90.

Resistance levels: 
173.60 
174.10
174.65

Support levels: 
171.30
170.50
170