Fundamental overview:
GBP/JPY is expected to trade with bullish bias. It is supported by the positive investor risk appetite, buoyant USD/JPY undertone and demand from Japan's importers. But the GBP/JPY gains are tempered by the weak EUR/USD undertone and the Japanese exports. The GBP/JPY losses are also tempered by the pound demand on buoyant GBP/JPY cross amid positive investor risk appetite.
Technical comment:
The daily chart is mixed as the MACD is bullish, stochastics is turning bullish at oversold levels, but five-day moving average is below 15-day moving average and is 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 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
