GBP/JPY is expected to trade with risks skewed lower. It is undermined by the increased investor risk aversion, Japan exporter sales and reduced expectations of further easing from the Bank of Japan. But GBP/JPY losses are tempered by the positive euro sentiment and demand from Japan importers and positions adjustment before weekend. Daily chart is negative-biased as MACD and stochastics are bearish, five-day moving average is below 15-day MA and is 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. Short position is recommended with the first target at 169.10. A breach of this target will move the pair further downwards to 168.55. The pivot point stands at 170.50. In case the price moves in the opposite direction and bounces back from support level, and then it moves above its pivot point, it is likely to move further to the upside. In that scenario, a long position is recommended with the first target at 171.05 and the second target at 171.61.
Resistance levels:
171.05
171.60
172 Support levels:
169.10
168.55
168
The material has been provided by InstaForex Company – www.instaforex.com
Overview:
GBP/JPY is expected to trade with risks skewed lower. It is undermined by the increased investor risk aversion, Japan exporter sales and reduced expectations of further easing from the Bank of Japan. But GBP/JPY losses are tempered by the positive euro sentiment and demand from Japan importers and positions adjustment before weekend. Daily chart is negative-biased as MACD and stochastics are bearish, five-day moving average is below 15-day MA and is 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. Short position is recommended with the first target at 169.10. A breach of this target will move the pair further downwards to 168.55. The pivot point stands at 170.50. In case the price moves in the opposite direction and bounces back from support level, and then it moves above its pivot point, it is likely to move further to the upside. In that scenario, a long position is recommended with the first target at 171.05 and the second target at 171.61.
Resistance levels:
171.05
171.60
172
Support levels:
169.10
168.55
168
The material has been provided by InstaForex Company – www.instaforex.com
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