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 Japanese export sales and caution ahead of the ECB's interest rate decision on Thursday. The daily chart is positive-biased as MACD and stochastics turned bullish, five-day moving average is rising above a 15-day MA.
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:
173.65
174
174.50
Support levels:
172.55
172.30
172