Fundamental overview:
GBP/JPY is expected to consolidate with bearish bias. GBP/JPY is undermined by the weak GBP sentiment, increased investor risk aversion and Japan exportsales. But GBP/JPY losses are tempered by the demand from Japan importers.
Technical comment:
Daily chart is negative-biased as MACD and slow stochastic indicators bearish, although latter at oversold levels; five- and 15-day moving averages 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 178.45. A break of this target will move the pair further downward to 177.10. The pivot point stands at 181.70. 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. According to that scenario, a long position is recommended with the first target at 183.65 and the second target at 185.
Resistance levels:
183
185
185.70
Support levels:
178.45
177.10
176.65
The material has been provided by InstaForex Company - www.instaforex.com
