Fundamental overview:
GBP/JPY is expected to consolidate with a bearish bias. It is supported by the soft yen sentiment, waning investor risk aversion and demand from Japan's importers. But GBP/JPY gains are tempered by Japan's export sales. Daily chart is positive-biased as MACD indicator is bullish, slow stochastic measure stays elevated at the overbought levels, five and 15-day moving averages are advancing.
Technical comment:
Daily chart is positive-biased as MACD indicator is bullish, slow stochastic measure stays elevated at the overbought levels, five and 15-day moving averages are advancing.
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 181.50. A break of this target will move the pair further downwards to 181.05. The pivot point stands at 182.80. In case the price moves in the opposite direction and bounces back from the support level, then it will move 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 183.35 and the second target at 183.95.
Resistance levels:
183.35
183.95
184.75
Support levels:
181.50
181.05
180.75
The material has been provided by InstaForex Company - www.instaforex.com
