GBP/JPY is expected to trade in a higher range. It is supported by the weak yen sentiment and demand from Japan’s importers. But GBP/JPY gains are tempered by Japan’s exporter sales and diminished investor risk appetite and sterling sales on buoyant EUR/GBP cross.
Daily chart is positive-biased as stochastics stays elevated near overbought levels, five and 15-day moving averages are advancing.
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 186.50 and the second target at 187. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 184.70. A break of this target would push the pair further downwards and one may expect the second target at 184. The pivot point is at 185.25.
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