FX.co ★ GBP/JPY: Upside (Aug 22, 2013)

Overview:
GBP/JPY is trading in higher range. The rate is undermined by increased risk aversion; Japan exporter sales. But GBP/JPY losses are tempered by demand from Japan importers. Daily chart is still positive-biased as MACD and stochastics are in bullish mode.

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, trading in higher range is most favorable and buy position is recommended above its pivot, with the first target at 154.05 and the second target at 154.6. You should keep in view short position below the pivot keeps the first target at 152.55, breach of this target will move the pair downward further and one may expect the second target at 151.7. The pivot point stands at 153.

Resistance Levels:
R1 - 154.05
R2 - 154.6
R3 - 155

Support Levels:
S1 - 152.55
S2 - 151.7
S3 - 151