Fundamental overview:
GBP/JPY is expected to consolidate with a bullish bias. It is supported by the weak yen sentiment, firmer EUR/USD undertone and demand from Japan's importers. Sterling sentiment was boosted by less-dovish-than-expected Bank of England MPC November meeting minutes showing a seven against two vote for leaving rates unchanged at 0.5% and deepening divisions among the seven-member majority who favored keeping rates on hold. But GBP/JPY gains are tempered by Japan's export sales.
Technical comment:
Daily chart is positive-biased as MACD is bullish, stochastics stays elevated at the overbought levels, 5 and 15-day moving averages are advancing.
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 186.15 and the second target at 187. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 183.35. A break of this target would push the pair further downwards and one may expect the second target at 182.80. The pivot point is at 184.15.
Resistance levels:
186.15
187
187.75
Support levels:
183.35
182.80
182.35
The material has been provided by InstaForex Company - www.instaforex.com
