GBP/JPY is expected to trade in a lower range. It is undermined by the diminished investors’ appetite for risk, weaker EUR/USD undertone, and export sales of Japan. But EUR/JPY losses are tempered by the demand from Japan importers and positions adjustment ahead of weekend.
The daily chart is mixed as the MACD is bullish but stochastics is turning neutral.
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 176. A break of that target will move the pair further downwards to 175.45. The pivot point stands at 177.55. 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 178.30 and the second target at 179.30.
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