GBP/JPY is expected to trade with a bullish bias. It is supported by the positive investor risk appetite and demand from Japan’s importers. But GBP/JPY gains are tempered by Japan’s export sales. However, GBP/JPY losses are tempered by the sterling demand on soft EUR/GBP cross as well as positive investor risk appetite.
Daily chart is mixed as MACD is bullish but stochastics is bearish in the overbought zone.
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 184.35 and the second target at 185.30. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 182.30. A break of this target would push the pair further downwards and one may expect the second target at 181.70. The pivot point is at 182.80.
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