FX.co ★ GBPJPY: bullish bias (Nov 5, 2013)

Overview:
GBP/JPY is trading in a higher range. It is supported by positive 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 are bearish, the 5-day moving average is below the 15-day MA and declining; although the inside-day-range pattern was completed Monday.

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 157.9 and the second target at 158.25. In alternative scenario, if the price moves below its pivot point, short positions are recommended with the first target at 156.55, the breach of this target will move the pair further downwards and one may expect the second target at 156.15. The pivot point stands at 157.25.

Resistance levels:
157.6
157.9
158.25
Support levels:

156.15
155.75
155.45