FX.co ★ GBPJPY: Upside (oct 03,2013)

Overview:
GBP/JPY is trading with risks skewed higher. It is supported by positive euro sentiment, improving risk appetite, demand from Japan importers. But GBP/JPY gains are tempered by Japan exporter sales. Daily chart is still negative-biased as MACD and stochastics is in bearish mode.

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 158.85 and the second target at 159.25. In alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 157.4. The breach of this target will move the pair further downwards and one may expect the second target at 157. The pivot point stands at 157.75.

Resistance levels:
158.85
159.25
159.75

Support levels:
157.4
157
156.5