FX.co ★ Technical analysis of GBP/JPY for January 02, 2014

Overview:

GBP/JPY is expected to trade in lower range with risks skewed higher supported by weak yen and positive risk sentiment. But GBP/JPY gains tempered by sell-euro orders from Japan exporters. Daily chart is positive-biased as MACD is bullish, stochastics stays elevated at overbought, five- and 15-day moving averages are 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 the level of 172.6 and the second target at 171.9 in mind. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 175.55. The breach of this target will move the pair further downwards and one may expect the second target at 176.85. The pivot point stands at 174.9.

Resistance levels:
175.55
176.85
178.05
Support levels:
172.6
171.9
171