Overview:
GBP/JPY is expected to trade in a higher range. It is supported by the buoyant USD/JPY undertone and demand from Japanese importers. But GBP/JPY gains are tempered by the weak EUR sentiment and Japanese export sales. The daily chart is mixed as MACD is flat, stochastics is turning neutral, inside-day-range pattern was completed on Monday.
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 long as the price is keeping above its pivot point, a long position is recommended with the first target at 174 and the second target at 174.50. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 172.55. A break of this target would push the pair further downwards and one may expect the second target at 172.30. The pivot point is at 173.05.
Resistance levels:
174
174.50
174.75
Support levels:
172.55
172.30
172
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