Fundamental Overview:
GBP/JPY to trade in lower range. Supported by rebounding GBP/USD and by sterling sales on cross trades versus major currencies, receding investor risk appetite and demand from the Japan importers. But GBP/JPY gains are tempered by soft USD/JPY undertone and Japan exporter sales.
Technical Comment:
Daily chart is mixed as MACD is bearish, five-day moving average is below 15-day MA and is declining, but stochastics is turning bullish at oversold zone.
Trading recommendations:
The pair is trading below its pivot point. It is likely to trade in a lower range as far as it remains below its pivot point. Short position is recommended with the first target at 173.50. A break of this target will move the pair further downwards to 172.95. The pivot point stands at 175.15. In case the price moves in the opposite direction and bounces back from the support level, then it will moves above its pivot point. It is likely to move further to the upside. In that scenario, a long position is recommended with the first target at 176 and the second target at 176.65.
Resistance levels:
176
176.65
177.10
Support levels:
173.50
172.95
172.50
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