Technical analysis of GBP/JPY for December 30, 2013

Overview:

GBP/JPY is trading with bullish bias. The pair
stands above its support and remains on the upside. Daily chart is still positive-biased
as MACD is bullish, stochastics stays elevated at overbought, five-day moving
average is above 15-day MA and advancing.  

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, a long position is recommended with the first target at 173.95 and the second target at 174.75 in mind. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 172,the breach of this target will move the pair further downwards and one may expect the second target at 171.4. The pivot point stands at 172.6.

Resistance levels:   

173.9 

174.75

175.25

Support levels: 

172 

171.4 

170.8  

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