Fundamental overview:
GBP/JPY is expected to trade in a lower range. It is supported by the weak yen sentiment and demand from Japan's importers. Undermined by continued impact from dovish Bank of England quarterly inflation report; sterling sales on cross trades versus major currencies; and subdued investor risk appetite. But GBP/JPY gains are tempered by the contained investor risk appetite, Japan's export sales and positions adjustment before the weekend.
Technical comment:
Daily chart is positive-biased as MACD indicator is bullish, slow stochastic measure stays elevated at overbought levels, five and 15-day moving averages are advancing although inside-day-range pattern was completed on Thursday.
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
