Fundamental overview:
GBP/JPY is expected to trade with bullish bias.It is supported by the positive global risk sentiment and demand from Japan importers. But GBP/JPY gains are tempered by the Japan exporter sales. But sterling sentiment is dented by the higher-than-expected 5.7% U.K. unemployment rate in the 3 months to January (versus forecast 5.6%), smaller-than-expected 1.8% on-year rise in average weekly earnings in the 3 months to January (versus forecast +2.2% on-year).
Technical comment:
The daily chart is tilting positive as stochastics is rising from oversold levels, bullish parabolic stop-and-reverse signal was hit on Wednesday.
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 180.80 and the second target at 181.80. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 177.10. A break of this target would push the pair further downwards, and one may expect the second target at 176.15. The pivot point is at 178.55.
Resistance levels:
180.80
181.80
182.75
Support levels:
177.10
176.15
175.35
The material has been provided by InstaForex Company - www.instaforex.com
