FX.co ★ Technical analysis of GBP/JPY for October 24 2014

Fundamental overview:

GBP/JPY is expected to trade in a higher range. It is supported by the improved GBP sentiment and demand from Japan's importers. But GBP/JPY gains are tempered by Japan's export sales and positions adjustment before the weekend.

Technical comment:

Daily chart is tilting positive as bullish outside-day-range pattern was completed on Thursday, MACD and stochastics are turning bullish.

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 long as the price is keeping above its pivot point, a long position is recommended with the first target at 174.15 and the second target at 174.95. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 172.55. A break of this target would push the pair further downwards and one may expect the second target at 171.75 The pivot point is at 172.90.

Resistance levels:
174.15
174.95
175.65
Support levels:
172.55
171.75
171