Fundamental Overview:
GBP/JPY is expected to resume a bullish bias. It is undermined by the weak EUR sentiment and Japanese export sales. But GBP/JPY losses are tempered by the demand from Japanese importers and buoyant USD/JPY undertone and surprise 0.2% on-month drop in U.K. Nationwide September house price index (versus forecast +0.5%). Besides, the currency pair is also tempered by the sterling demand on soft EUR/GBP cross and expectations of rate increase from Bank of England in early 2015. Daily chart is negative-biased as MACD and stochastics are bearish, five-day moving average is below 15-day MA and is declining.
Technical Comment:
Daily chart is negative-biased as MACD and stochastics are bearish, five-day moving average is below 15-day MA and is declining.
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 178.45 and the second target at 179.15. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 176.75. A break of this target would push the pair further downwards and one may expect the second target at 175.80. The pivot point is at 177.35.
Resistance levels:
178.45
179.15
179.90
Support levels:
176.75
175.80
175.30
The material has been provided by InstaForex Company - www.instaforex.com
