Fundamental overview:
GBP/JPY is expected to trade in a higher range. It is supported by the subdued investor risk aversion and demand from Japan's importers. But GBP/JPY gains are tempered by the Japanese exporter.
Technical comment:
The daily chart is still negative-biased as the MACD is bearish, stochastics stays suppressed at oversold levels, five- and 15-day moving averages are declining.
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 180.90 and the second target at 181.65. In an alternative scenario, if the price moves below its pivot points, short posisitions are recommended with the first target at 177.50. A break of this target would push the pair further downwards and one may expect the second target at 176.94. The pivot point is at 178.25.
Resistance levels:
180.90
181.65
182.35
Support levels:
177.50
176.95
176.45
The material has been provided by InstaForex Company - www.instaforex.com
