GBP/JPY is expected to trade in a higher range. It is supported by the diminished investor risk aversion and demand from the Japanese importers. But the GBP/JPY gains are tempered by Japan’s exports.
The daily chart is mixed as the MACD is bullish, but stochastics is in bearish mode, inside-day-range pattern was completed on Wednesday.
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 185.05 and the second target at 185.70. 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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