FX.co ★ Technical analysis of GBP/JPY for Feburary 21, 2014

Overview:

GBP/JPY is expected to rebound. It is supported by the positive risk appetite and demand from Japan importers. But EUR/JPY gains are tempered by the Japan exporter sales and weaker euro sentiment and positions adjustment before weekend. Daily chart is positive biased as MACD and stochastics are bullish, although latter is at overbought zone, five-day moving average is above 15-day MA and is 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 171.90 and the second target at 172.55. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 169.5. A breach of this target will push the pair further downwards and one may expect the second target at 169. The pivot point is at 170.05.

Resistance levels:
171.90
172.55
173

Support levels:
169.5
169
168.25