GBP/JPY is expected to trade in a higher range as markets are awaiting the Bank of England's interest rate decision: the BOE is expected to leave interest rates unchanged at their current record low of 0.5%. It is undermined by the weaker USD/JPY undertone and Japan export sales. But GBP/JPY losses are tempered by the demand from Japan importers and positive investor risk appetite.
The daily chart is mixed as the MACD is bullish, but stochastics is bearish at overbought levels.
The pair is trading above its pivot point. It is likely to trade in a wider range as long as it remains above its pivot point. As long as the price holds above its pivot point, long positions are recommended with the first target at 186 and the second target at 186.55. In the alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 183. A break of this target is likely to push the pair further downwards, and one may expect the second target at 182.40. The pivot point is at 183.80.
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