Fundamental overview:
GBP/JPY is expected to consolidate with risks skewed lower. It is undermined by the decreased investor risk appetite and Japan's exports. The GBP/JPY losses are tempered by the demand from the Japanese importers.
Technical comment:
The daily chart is still positive-biased as the MACD and stochastics are bullish, 5-day moving average is above 15-day moving average and is advancing.
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 177.50. A break of that target will move the pair further downwards to 176.50. The pivot point stands at 179.30. 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 180.10 and the second target at 180.80.
Resistance levels:
180.10
180.80
181.80
Support levels:
177.50
176.70
176.15
The material has been provided by InstaForex Company - www.instaforex.com
