GBP/JPY is expected to trade in a higher range. It is undermined by the weaker euro sentiment after disappointing Germany Ifo business climate data for February, flows to the safe haven yen amid diminished risk appetite and Japan’s exports. But the GBP/JPY losses are tempered by demand from the Japanese importers.
The daily chart is mixed as theMACD is bullish, but stochastics is in bearish mode, five-day moving average is meandering sideways above ascending 15-day moving average.
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 185.25 and the second target at 185.65. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 182.90. A break of this target would push the pair further downwards, and one may expect the second target at 182.50. The pivot point is at 183.50.
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