Fundamental overview:
GBP/JPY is expected to consolidate in a higher range. It is undermined by the soft USD/JPY undertone and Japan exporter sales and continued impact from less-dovish-than-expected UK Bank of England MPC meeting minutes released last Wednesday, positive investor risk appetite, and sterling demand on soft EUR/GBP cross. But GBP/JPY is limited by the positive investor risk appetite and demand from Japan importers.
Technical comment:
The daily chart is still positive-biased as the MACD and stochastic are bullish, five-day moving average is above 15-day moving average and is advancing.
Trading recommendations:
The pair is trading above its pivot point. It is likely to trade in a wider range as long as it remains above its pivot point. As long as the price holds above its pivot point, long positions are recommended with the first target at 181.20 and the second target at 181.80. In the alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 179.40. A break of this target is likely to push the pair further downwards, and one may expect the second target at 178.40. The pivot point is at 180.
Resistance levels:
181.20
181.80
182.45
Support levels:
179.40
178.90
178.50
