Fundamental Overview:
GBP/JPY is expected to consolidate with a bullish bias. It is supported by the buoyant USD/JPY undertone and demand from Japanese importers. Besides, it is also supported after the latest YouGov poll published on Thursday showing slippage in the ratio ahead of the Scottish referendum with those who support independence at 48% and those for staying in the U.K. at 52% (the figures excluding voters who haven't decided how to vote). But EUR/JPY gains are tempered by Japanese export sales and positions adjustment ahead of Japan's long weekend.
Technical Comment:
The daily chart is positive-biased as MACD and stochastics are bullish, five-day moving average is above 15-day MA and is advancing.
Trading recommendations:
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 174.70 and the second target at 175.40. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 172.60. A break of this target would push the pair further downwards and one may expect the second target at 172. The pivot point is at 173.30.
Resistance levels:
174.70
175.40
176
Support levels:
172.60
172
171.45
The material has been provided by InstaForex Company - www.instaforex.com
