Overview: GBP/JPY is expected to trade with risks skewed lower as markets await FOMC's interest rate decision. GBP/JPY is undermined by the increased investor risk aversion and Japan exporter sales. But GBP/JPY downside is limited by the demand from Japan importers and buoyant USD/JPY undertone. Daily chart is mixed as MACD is bearish, but stochastics is bullish at oversold zone, five-day moving average is meandering sideways.
Trading recommendations:
The pair is trading below its pivot point. It is likely to trade in a lower range as far as it remains below its pivot point. Short position is recommended with the first target at 172.55. A break of this target will move the pair further downwards to 172.35. The pivot point stands at 173.35. In case the price moves in the opposite direction and bounces back from the support level, then it will moves above its pivot point. It is likely to move further to the upside. In that scenario, a long position is recommended with the first target at 173.75 and the second target at 174.10.
Resistance levels:
173.75
174.10
174.45
Support levels:
172.55
172.35
171.90
Read more: https://www.instaforex.com/forex_analysis/48752/