Fundamental overview:
GBP/JPY is expected to consolidate with risks skewed lower. It is undermined by the reduced investor risk appetite and Japan's export sales. But GBP/JPY losses are tempered by the demand from the Japanese importers. But sterling sentiment is dented by a sudden 0.1% monthly drop in the UK October industrial production (versus forecast +0.2%) and a surprise 0.7% monthly fall in the UK October manufacturing output (versus forecast +0.2%).
Technical comment:
Daily chart is tilting negative as MACD is in bearish mode, stochastics is turning bearish.
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 185.75 and the second target at 185.10. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 188.45. A break of this target would push the pair further downwards and one may expect the second target at 189.20. The pivot point is at 187.85.
Resistance levels:
188.45
189.20
189.75
Support levels:
185.75
185.10
184.75
The material has been provided by InstaForex Company - www.instaforex.com
