FX.co ★ Technical analysis of GBP/JPY for January 30, 2015

Fundamental overview:
GBP/JPY is expected to trade in a lower range. It is supported by the positive risk sentiment and the demand from Japan's importers. But GBP/JPY gains are tempered by the Japanese exports and positions adjustment ahead of the weekend. The GBP sentiment is dented as yield on the 10-year UK bond settled at 1.419% on Thursday at the lowest closing amid expectations of the low UK inflation.

Technical comment:
The daily chart is mixed as the MACD is bearish, but stochastics is rising from oversold levels.

Trading recommendations:
The pair is trading below its pivot point. It is likely to trade in a lower range as far as it remains below the pivot point. Short positions are recommended with the first target at 177.15. A break of this target will move the pair further downward to 176.45. The pivot point stands at 178.50. In case the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to move further to the upside. According to that scenario, a long position is recommended with the first target at 179.45 and the second target at 180.15.

Resistance levels:
179.45
180.15
180.90

Support levels:
177.15
176.45
175.75