Fundamental overview:
GBP/JPY is expected to consolidate with bearish bias. It is гndermined by weak GBP/USD undertone and Japan exporter sales. But GBP/JPY losses are tempered by the positive investor risk appetite and demand from Japan importers.
Technical comment:
The daily chart is negative-biased as the MACD and stochastics are bearish, a five-day moving average is below a 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 long as it remains below the pivot point. Short positions are recommended with the first target at 175.45. A break of that target is likely to underpin the pair further downwards to 174.80.The pivot point is at 177.05. In case the price moves in the opposite direction and bounces back from the support level, it will get above its pivot point. It is likely to move further to the upside. According to that scenario, long positions are recommended with the first target at 177.50 and the second target at 178.05.
Resistance levels:
177.50
178.05
178.50
Support levels:
175.45
174.80
174.35
The material has been provided by InstaForex Company - www.instaforex.com
