Fundamental Overview:
GBP/JPY is expected to trade in a range. It is undermined by the weak EUR sentiment, reduced investor risk appetite; worse-than-expected drop in U.K. GfK consumer confidence index to -1.0 in September from +1.0 in August (versus forecast of 0.0). and Japanese export sales. But GBP/JPY downside move is limited by the demand from Japanese importers and buoyant USD/JPY undertone and by the sterling demand on buoyant GBP/NZD cross as well as expectations of rate increase from Bank of England in early 2015.
Technical Comment:
Daily chart is still negative-biased as MACD and stochastics are bearish.
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 178.50. 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
