04.10.201309:09 Forex Analysis & Reviews: GBPJPY: range trade (Oct 04, 2013)

Overview:
GBP/JPY is trading in a range. It is supported by positive euro sentiment, demand from Japan importers. But GBP/JPY upside is limited by Japan exporter sales, weak investor risk appetite, positions adjustment before weekend. Daily chart is still negative-biased as MACD and stochastics are in bearish mode; 5-day moving average is below 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 156.6 in view; a breach of this target will move the pair further downwards to 156.05. The pivot point stands at 157.8. 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 158.25 and the second target at 158.85.  

Support levels:
156.6
156.05
155.75

Resistance levels:
158.25
158.85
159.25