Fundamental overview:
The GBP/JPY is expected to trade buoyant. It is supported by diminished investor risk aversion and demand of Japanese importers. It is also supported by sterling demand on soft EUR/GBP cross and sterling demand on buoyant GBP/JPY cross amid diminished risk aversion. But GBP/JPY upside is limited by weak EUR/USD undertone and Japanese importers sales.
Technical comment:
The daily chart is mixed, as stochastics is bearish, a five-day moving average is below a 15-day moving average and is declining, but the MACD is still in a bullish mode.
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 183.35. A break of that target will move the pair further downwards to 182.90. The pivot point stands at 184.50. 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 185.05 and the second target at 185.70.
Resistance levels:
185.05
185.70
186.15
Support levels:
183.35
182.90
182.50
The material has been provided by InstaForex Company - www.instaforex.com
