Fundamental Overview:
GBP/JPY is expected to trade in a lower range. It is undermined by the weak EUR sentiment and Japan's export sales and sterling sales on retreating GBP/AUD, GBP/NZD, GBP/CAD crosses. But GBP/USD losses are tempered by sterling demand on buoyant GBP/JPY cross amid the positive risk sentiment and sterling demand on soft EUR/GBP cross. But GBP/JPY losses are tempered by the buoyant USD/JPY undertone and demand from Japanese importers.
Technical Comment:
Daily chart is mixed as MACD is bullish, but stochastics is bearish at the overbought zone.
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 176.75. A break of this target will move the pair further downwards to 175.80. The pivot point stands at 178.505. 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 179.15 and the second target at 179.90.
Resistance levels:
179.15
179.90
180.35
Support levels:
176.75
175.80
175.30
The material has been provided by InstaForex Company - www.instaforex.com
