Overview: GBP/JPY is trading with risks skewed lower. it is undermined by increased investor risk aversion, Japan exporter sales. But GBP/JPY losses are tempered by demand from Japan importers. Daily chart is negative-biased as MACD and stochastics are bearish, although the latter is in oversold zone; the five-day moving average is below the 15-day MA and declining.
Trading recommendation:
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. A short position is recommended with the first target at 154.6 in view; a breach of this target will move the pair further downwards to 154.1. The pivot point stands at 156.65. In case the price moves in the opposite direction, bounces back from support, and moves above its pivot point, then the price is most favorably expected to move further to the upside, In that scenario a long position is recommended with the first target at 157.35 and the second target at 157.8.
Support levels: 154.6 154.1 153.75
Resistance levels: 157.35 157.8 158.3
The material has been provided by InstaForex Company – www.instaforex.com
Overview:
GBP/JPY is trading with risks skewed lower. it is undermined by increased investor risk aversion, Japan exporter sales. But GBP/JPY losses are tempered by demand from Japan importers. Daily chart is negative-biased as MACD and stochastics are bearish, although the latter is in oversold zone; the five-day moving average is below the 15-day MA and declining.
Trading recommendation:
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. A short position is recommended with the first target at 154.6 in view; a breach of this target will move the pair further downwards to 154.1. The pivot point stands at 156.65. In case the price moves in the opposite direction, bounces back from support, and moves above its pivot point, then the price is most favorably expected to move further to the upside, In that scenario a long position is recommended with the first target at 157.35 and the second target at 157.8.
Support levels:
154.6
154.1
153.75
Resistance levels:
157.35
157.8
158.3
The material has been provided by InstaForex Company – www.instaforex.com
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