Fundamental overview:
GBP/JPY is expected to consolidate with bearish bias. It is undermined by the diminished investor risk appetite, Japan's export sales, the sterling sales on buoyant EUR/GBP cross and on soft GBP/CHF cross. But GBP/JPY losses are tempered by the demand from the Japanese import and the sterling demand on buoyant GBP/CAD cross.
Technical comment:
The daily chart is negative-biased as bearish outside-day-range pattern was completed on Monday, the MACD and stochastics are bearish, five-day moving average is below 15-day moving average and is declining.
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 the pivot point. Short positions are recommended with the first target at 182.05. A break of this target will move the pair further downward to 181.05. The pivot point stands at 184.90. In case the price moves in the opposite direction and bounces back from the support level, 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 186.30 and the second target at 187.10.
Resistance levels:
186.30
187.10
187.90
Support levels:
182.05
181.05
180
The material has been provided by InstaForex Company - www.instaforex.com
