Fundamental overview:
GBP/JPY is expected to consolidate with risks skewed lower. It is undermined by the increased investor risk aversion, weaker USD/JPY undertone and Japan's export sales. But GBP/JPY losses are tempered by the demand from Japan's importers.
Technical comment:
The daily chart is mixed as five- and 15-day moving averages are advancing but MACD is in a bearish mode, a bearish dark-cloud-cover candlestick pattern was completed on Monday.
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 189.70 and the second target at 190.40. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 187.50. A break of this target would push the pair further downwards and one may expect the second target at 186.80. The pivot point is at 188.25.
Resistance levels:
189.70
190.40
190.75
Support levels:
187.50
186.80
186.30
The material has been provided by InstaForex Company - www.instaforex.com
