GBP/JPY is expected to trade in a lower range.It is underpinned by positive investor risk sentiment, the stronger EUR/USD undertone and demand from the Japanese importers. The GBP/JPY gains are tempered by Japan’s exports and positions adjustment ahead of the weekend.
The daily chart is mixed as the MACD is bearish, five- and 15-day moving averages are declining, but stochastics is turning bullish at oversold levels. Inside-day-range pattern was completed on Thursday.
The pair is trading below its pivot point. It is likely to trade in a lower range as far as it remains below the pivot point. Short positions are recommended with the first target at 178. A break of that target will move the pair further downwards to 177.25. The pivot point stands at 180.16. In case the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to move further to the upside. According to that scenario, a long position is recommended with the first target at 180.80 and the second target at 181.75.
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