FX.co ★ Technical analysis of GBPJPY for April 23, 2014

Overview:

GBP/JPY is expected to trade with bearish bias. It is supported by the positive investor risk appetite, negative yen sentiment, and demand from Japan importers. But GBP/JPY gains are tempered by Japan's exporter sales. Daily chart is mixed as MACD is bearish, but stochastics is in bullish mode.

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. Short position is recommended with the first target at 171.35. A breach of this target will move the pair further downwards to 171. The pivot point stands at 172.10. In case the price moves in the opposite direction and bounces back from support level, and then it moves above its pivot point, it is likely to move further to the upside. In that scenario, a long position is recommended with the first target at 172.40 and the second target at 172.80.

Resistance levels:
172.40
172.80
173.15

Support levels:
171.35
171
170.55