Fundamental overview:
GBP/JPY is expected to consolidate. It is supported by the buoyant GBP/USD and demand from Japan's importers. But GBP/JPY upside is limited by Japan's export sales and softer USD/JPY undertone. GBP sentiment is boosted after BOE Gov. Carney told U.K. Parliament's treasury committee that the central bank's Monetary Policy Committee hasn't discussed the need for further stimulus, playing down the risk of deflation in the U.K. and that officials' deliberations remain focused on the timing and degree of an eventual tightening in policy. Daily chart is mixed as MACD is bullish but stochastics is bearish at overbought levels.
Technical comment:
Daily chart is mixed as MACD is bullish but stochastics is bearish at overbought levels.
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 186.30 and the second target at 186.75. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 184. A break of this target would push the pair further downwards and one may expect the second target at 183.35. The pivot point is at 184.70.
Resistance levels:
186.30
186.75
187.25
Support levels:
184
183.35
182.80
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