Fundamental overview:
GBP/JPY is expected to consolidate with a bullish bias. It is supported by the improved euro sentiment after stronger-than-expected Germany ZEW November economic confidence data, positive investor risk appetite; soft yen sentiment and demand from Japan's importers. But GBP/JPY gains are tempered by Japan's export sales. Daily chart is positive-biased as MACD is bullish, stochastics stays elevated at the overbought levels, 5 and 15-day moving averages are advancing.
Technical comment:
Daily chart is positive-biased as MACD is bullish, stochastics stays elevated at 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 185.20 and the second target at 186.05. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 182.25. A break of this target would push the pair further downwards and one may expect the second target at 181.50. The pivot point is at 182.80.
Resistance levels:
185.20
186.05
186.45
Support levels:
182.25
181.50
181
The material has been provided by InstaForex Company - www.instaforex.com
