GBP/JPY: Bullish bias

Overview:
GBP/JPY is in range-trade. The rate is undermined by euro sales from Japan exporters. But GBP/JPY downside is limited by Bank of Japan’s aggressive easing measures to help reach its 2% inflation target; euro demand from Japan importers; positions adjustment before weekend. Daily chart is mixed as MACD is bullish, but stochastics is bearish at overbought.  

Trading recommendations: 
The pair is trading above its pivot point. The pair is likely to trade in higher range as far as it remains above its pivot point. As far as the price is above its pivot point, it will be most favorably to trade in higher range and buy position is recommended above its pivot with the first target at 156.4 and the second target at 156.75. You should keep in view short position below the pivot keep of the first target at 154.8, the breach of this target will move the pair downward further and expect the second target at 154.5. The pivot point stands at 155.3.  

Resistance levels:
R1 – 156.4
R2 – 156.75
R3 – 157
Support levels:
S1 – 154.8
S2 – 154.5
S3 – 154.2

The material has been provided by InstaForex Company – www.instaforex.com