Fundamental overview:
GBP/JPY is expected to consolidate with bearish bias after hitting a six-week low of 130.71 on EBS this morning. GBP/JPY is undermined by the flows to the safe-haven yen amid increased investor risk aversion, the soft EUR/USD undertone and Japan's exports. The losses of GBP/JPY are tempered by demand from the Japanese importers.
Technical comment:
The daily chart is negative-biased as the MACD is bearish, stochastics stays suppressed at oversold levels. 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 183.65. A break of that target will move the pair further downwards to 184.05. The pivot point stands at 183.20. 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 182.10 and the second target at 181.45.
Resistance levels:
183.65
184.05
184.40
Support levels:
182.10
181.45
181.15
The material has been provided by InstaForex Company - www.instaforex.com
